Escolar Documentos
Profissional Documentos
Cultura Documentos
TOGETHER
TOWARDS
TOMORROW
CONTENTS
01 Our Directors
02 Chairmans Message
06
07 Notice of AGM
13
19 Directors Report
39
67 Auditors Report
72 !"
Our Directors
Whole Time Directors
Chairman & Managing Director
(From 01.03.2014)
(DIN:03016991)
#"
Director
(DIN:02340756)
"(
Director Finance
(From 01.06.2013)
(DIN:05340626)
#(
)
Director
(DIN:01099026)
Director Refineries
(From 01.07.2013)
(DIN:06620620)
(
"
Director
(From 27.09.2013)
(DIN:00004072)
& (
+
Director
(Till 09.01.2014)
(DIN:00356644)
"(
)
Director
(Till 09.01.2014)
(DIN:00309302)
Chairman's Message
Dear Shareholders,
It is a matter of immense pleasure and pride to present the 62nd Annual Report for the year 2013-14.
This is the year in which HPCL completes 40 years since formation in 1974 - a key historical milestone. It is only befitting, then,
that we achieved the highest net profit level in the last decade in the year 2013-14. It is also very satisfying to report that HPCL
clocked the highest growth in market sales amongst Public Sector Oil Marketing Companies (OMCs). When one considers this
performance in the backdrop of a slowing economy, stagnant petroleum demand and a volatile exchange rate, the performance
seems even more remarkable.
Each of our business units worked in tandem and continued to deliver superior performance. We also obtained an MOU score
of 1.034 for 2012-13, which is the best score amongst all the PSUs under the Ministry of Petroleum and Natural Gas (MOP&NG)
for the second consecutive year.
The Indian economy recovered marginally from the decade low GDP growth recorded in the last fiscal, even though it was less
than 5% for the second consecutive year. This indicated a slowdown, for the first time in nearly 25 years. The average oil price in
2013-14 was around US $ 106 per barrel, slightly lower than the 2012-13 average of US $ 108 per barrel. However, benchmark
prices were higher when denominated in rupee terms due to depreciation of rupee. The Rupee depreciated significantly against
US $ from ` 54 per dollar at end of March 2013 to about ` 69 per dollar in August 2013 and hovered around ` 62 per dollar during
October 2013 to February 2014. By end-March 2014, it was at ` 61 per dollar.
Sluggish economic activity, combined with sector-specific factors led to a nominal increase, in the consumption of petroleum
products in 2013-14, by a mere 1.3% to 160 million metric tonnes (MMT), from 157 MMT in 2012-13. On a positive note, underrecoveries of OMCs declined in 2013-14, as they were authorised, in January 2013, to increase diesel prices in regular increments.
HPCL recorded a stellar performance in 2013-14. Our Gross Sales increased by 7.7% to reach ` 2,32,188 crore while Profit after
Tax almost doubled to ` 1,734 crore from ` 905 crore in 2012-13. Our refineries processed 15.51 MMT of crude, achieving 105%
capacity utilisation. Refining margins improved to US $ 3.43 per barrel, against US $ 2.08 per barrel in 2012-13, while combined
distillate yield was 74.2% in 2013-14.
During the year, our refineries initiated various measures to improve margins by improving distillate yields and energy efficiency
index. A number of critical projects were completed during the year including, Diesel Hydro Treater (DHT) plants at Mumbai and
Visakhapatnam refineries to meet the requirements of Euro IV HSD in the country, Revamp of Propane De-asphalting unit (PDA)
at Mumbai refinery, Flue Gas Desulphurisation unit (FGD) II and augmentation of Propylene capacity at Visakhapatnam refinery.
HPCL is also developing a green R&D Centre in Bengaluru which will focus on developing competitive, energy-efficient and ecofriendly technologies.
HPCL continued the tradition of registering excellent sales performance. In 2013-14, we achieved total sales of 31.0 MMT, with an
all-time high domestic sales of 30.27 MMT; thereby recording a 4.1% increase over 2012-13, which is the highest growth amongst
the Oil Marketing Companies (OMCs).We registered a market share gain in Retail sales of motor fuels thereby achieving a stellar
performance of increasing market share sequentially over the last decade. We have also recorded Bitumen sales of 1 million
tonnes for the second consecutive year and launched new VG 40 Bitumen Grade for the first time in the Industry. We achieved a
significant milestone by becoming Indias largest lube marketer with total Lube sales of 484 TMT in 2013-14.
Another significant aspect during the year has been the robust throughput of 9.3 million tonnes from our Joint Venture refinery,
HMEL at Bathinda. This has enabled the corporation to consolidate its market share in the high growth region of Northern India.
Your Corporation has developed world class in-house capabilities in design, construction and operation of cross-country product
pipelines, as part of its strategy for leveraging this least-cost transportation mode. This strategy has paid rich dividends during
2013-14, with a record throughput of 15.69 MMT in pipelines. We have also registered significant progress on three new pipeline
projects under implementation viz. Rewari-Kanpur Pipeline and AwaSalawas Pipeline for white oils and MangaloreHassanBangalore LPG Pipeline.
To strengthen primary distribution and logistics, HPCL commissioned a White Oil Terminal at Ennore in Tamil Nadu with a tankage
of 115 TKL, 42 Tank truck-loading bays and two rail-loading facilities. LPG infrastructure was strengthened by the commissioning
of LPG bottling plant at Anantapur in Andhra Pradesh with bottling capacity of 60 TMT and enhancement of bottling capacities
at Mysore and Hazarwadi LPG plants.
Chairman's Message
Ensuring safe operations at all our locations continues to be a key focus area. It is a matter of satisfaction for us that we
achieved zero lost time accidents at our POL and LPG installations. Our commitment to Safety continues to be strengthened
with intensification of efforts to implement best in class systems and regular training of our personnel. We are committed to
sustainable development and various projects are currently underway towards reduction in carbon footprint and conservation
of energy.
Your Corporation is continually working to be a model of excellence in meeting the commitment to our society and has undertaken
projects with focus on Child-Care, Education, Health Care, Skill Development and Community Development in partnership with
specialized NGOs/Implementation partners.
While uncertainties surrounding the administered fuel pricing policy remain, and are likely to impact our performance, we have
maintained our strategy of investing in new infrastructure in our core areas of Refining and Marketing. We also plan to expand in
new areas such as Natural gas and move up the value chain, as energy needs of the country expand with the growing economy.
To tap future opportunities, we have entered into a Joint Venture agreement with Government of Rajasthan for a 9 MMTPA
refinery-cum-petrochemical complex at Barmer. We have also initiated activities for setting up a 5 MMTPA LNG terminal at
Chhara, in Gujarat, through a JV partnership with M/s S. P. Ports Pvt. Ltd. Further, we are participating in two separate Joint
Venture companies viz. GSPL India Gasnet Limited (GIGL) and GSPL India Transco Limited (GITL) with equity stakes from GSPL
(52%), IOCL (26%), HPCL (11%) and BPCL (11%) for laying, building and operating three natural gas pipelines. We have also
commissioned wind energy farms with a generation capacity of 50.5 MW and plan to expand the capacity by an additional 50
MW.
In the area of exploration and production (E&P), we acquired a stake in two natural gas blocks in Australia through the whollyowned subsidiary M/s Prize Petroleum Company Ltd. One of the fields is a producing one, the other is a discovered field and
yet to be developed. This is a significant step in our effort to move up the value chain with a focus on developing capabilities and
improving cash flows.
Modest recovery is expected in 2014-15 as GDP growth is forecast to be at around 5.5% due to part resolution of stalled projects
and improved business and consumer confidence. The narrowing of the current account deficit (CAD) and fiscal deficit has
reduced the risk of stress in the Indian economy. Increased forex reserves in the second half of 2013-14 helped the nation ride
out the volatility in the currency markets in the beginning of 2014, relatively smoothly. Headline inflation is trending down while
CPI inflation, in the recent past, has tended to be high due to volatile food prices. Any adverse outcome of the monsoon will,
therefore, increase inflationary pressures. Rising US oil supply and slowing emerging market growth predict a slightly declining
to flat oil prices this year. However, outages due to geopolitical risks could conversely, lead to volatility and spike in oil prices.
To insulate ourselves against external volatilities and uncertainty, we continue to focus on process improvements. We are
implementing two major projects, viz., Central Procurement and Integrated Margin Management for increasing competitiveness
and delivering superior value to the customers and stakeholders. An Innovation Council comprising of all the Business Heads
has been formed to design strategies for leveraging Innovation. Several projects with involvement of workmen are under
implementation to achieve operational efficiencies in Marketing Division.
People are the main stay of your organization and are core to achieving excellence in performance. HPCL is proud of its
committed, motivated and hard-working team of employees. Our focus is on capability building, empowerment,alignment of
employees to a common vision and creating an effective pipeline of leaders for the future. As we prepare for the challenges
ahead, it is our endeavor to ensure that there is a seamless transition to the next generation of leaders, who can take the
company to greater heights.
The Ministry of Petroleum & Natural Gas, Government of India, other Ministries / Departments of the Government of India,
and various State Governments have guided and supported us in all our efforts. Our customers, business associates and
shareholders have always been a source of strength and I thank them for their support.
We believe we can leverage the diverse skills, strengths and abilities of all our employees and stakeholders and prepare HPCL
for the future by working Together towards Tomorrow.
We look forward to your continued support in all our endeavours.
Thank you,
Nishi Vasudeva
ED (HSE Corporate)
ED IT&S
ED Finance (Refineries)
ED Retail
ED LPG
Shri H. Kumar
ED Information Systems
Shri S. Jeyakrishnan
ED Direct Sales
Shri A. Pande
Shri G. Sriganesh
ED Coordination, DCO
ED Human Resources
ED Employee Relations
ED Compensation Management
ED Mumbai Refinery
Shri J. Ramaswamy
ED - Corporate Finance
ED Viskah Refinery
ED*
Shri R. Ganesan
GM CSR
GM Pipeline Operations
Shri R. Radhakrishnan
GM IS (Functional)
GM Tax
GM Finance, CS&P
GM Legal
Shri B. Ravindran
GM Finance (Marketing)
Shri M. Rambabu
GM*
Shri R. Kesavan
GM*
GM Aviation
GM Pipeline Projects
Shri S. Paul
GM Internal Audit
Shri L. Venugopal
Shri S. Raja
Shri S. Bhattacharjee
GM Joint Ventures
Shri G. Chiranjeevi
GM Refinery Co-ordination
Shri S. Biswas
GM LPG
GM*
Shri K. Radhakrishnan
Shri R. Sudheendranath
GM Lubes
Shri S. K. Suri
GM IS (Technical)
GM*
Shri K. Srinivas
Company Secretary
*on deputation
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1
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3
Petroleum House
17, Jamshedji Tata Road
Mumbai - 400 020.
e-mail: corphpcl.co.in
website:www.hindustanpetroleum.com
1 )2
3
Hindustan Bhavan
8, Shoorji Vallabhdas Marg
Ballard Estate
Mumbai 400 001.
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4
111, Chandralok Complex
First Floor, Sarojini Devi Road
Secunderabad 500 003 (AP)
54
R&C Building
Sir J.J. Road, Byculla
Mumbai 400 008.
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Chartered Accountants, Mumbai
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B.D. Patil Marg, Chembur
Mumbai 400 074.
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Chartered Accountants, Mumbai
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Post Box No. 15
Visakhapatnam 530 001.
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Chartered Accountants, Visakhapatnam
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771, Anandpur
Off EM By-Pass
Kolkata - 700 107.
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6th & 7th Floor
Core 1 & 2, North Tower
Scope Minar, Laxmi Nagar
Delhi 110 092.
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1103, Raj Sunflower
Royal Complex, Eksar Road
Borivali West
Mumbai 400 092.
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C/o Lucknow Retail R.O.
4, Shanajaf Road, 1, Nehru Enclave
Besides VishwasKhand, Gomti Nagar
Lucknow 226 001 (U.P.)
*
1
1. Bank of Baroda
2. Bank of India
3. Citibank N.A.
4. Corporation Bank
5. HDFC Bank
6. ICICI Bank
7. Punjab National Bank
8. Standard Chartered Bank
9. State Bank of India
10. Union Bank of India
5(
4
1st Floor, Alpha Bazar
High Street 1
Law Garden
Ahmedabad 380 006.
4
Thalamuthu Natarajan Building
4th Floor, 8, Gandhi Irwin Road,
Post Box No.3045 Egmore,
Chennai 600 008.
(
7
60!
Jer Mansion, 1st Floor
70, August Kranti Marg
Mumbai 400 036.
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NOTICE is hereby given that the IE&9&:#(&:8# of the Shareholders of Hindustan Petroleum Corporation
Limited will be held on September 05, 2014 at 11.00 A.M. at Y.B. Chavan Auditorium, Yashwantrao Chavan Pratishthan, General
Jagannathrao Bhonsle Marg, Mumbai 400 021 to transact the following business :
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1.
To receive, consider and adopt the Audited Financial Statement of the Corporation for the Financial Year ended
March 31, 2014 and Reports of the Board of Directors and Auditors thereon.
2.
3.
To appoint a Director in place of Dr. Subhash Chandra Khuntia (DIN:05344972), who retires by rotation and is eligible for
reappointment.
4.
To appoint a Director in place of Shri Pushp Kumar Joshi (DIN:05323634) who retires by rotation and is eligible for
reappointment.
To consider and, if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution.
U(:
pursuant to the provisions of Section 148 and all other applicable provisions of the Companies Act, 2013
and the Rules framed thereunder, and as amended from time to time, and such other permissions as may be necessary, the
payment of the remuneration of ` 2,95,000/- (Rupees Two Lac Ninety Five Thousand Only) with applicable Service Tax plus
reimbursement of out of pocket expenses at actuals plus applicable service tax, to M/s. R. Nanabhoy & Company & Mr.
Rohit J. Vora who were appointed by the Board of Directors of the Company, as Cost Auditors to conduct the audit of the
cost records maintained by the Company for Financial Year ending March 31, 2015, be and is hereby ratified and approved.
*6
*
/
Date
Regd. Office
1
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1.
A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND
VOTE INSTEAD OF HIMSELF AND SUCH PROXY NEED NOT BE A MEMBER OF THE COMPANY. Proxies in order to be
effective must be deposited at the Registered Office of the Company not less than 48 hours before the time of the meeting.
In terms of Section 105 of the Companies Act, 2013 read with Rule 19 of the Companies (Management and Administration)
Rules, 2014 a person can act as proxy on behalf of members not exceeding fifty and holding in the aggregate not more than
ten percent of the total share capital of the company carrying voting rights. A member holding more than ten percent of the
total share capital of the company carrying voting rights may appoint a single person as proxy and such person shall not act
as a proxy for any other person or shareholder.
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2.
The Explanatory Statement made pursuant to Section 102 (1) of the Companies Act, 1956 in respect of the item No. 5 of
the Notice is annexed herewith.
3.
Dividend on Equity Shares as recommended by the Board of Directors for the Financial Year 2013-14, if approved at the
meeting, will be payable to those eligible members whose names appear :
(1) As Beneficial owners, as on August 13, 2014 as per the list to be furnished by National Securities Depository Ltd.
(NSDL) and Central Depository Services (India) Ltd. (CDSL) in respect of shares held in Dematerialised form, and
(2) As Members in the Register of Members of the Company as on September 05, 2014 in respect of shares held in
Physical Form, after giving effect to all valid share transfers in physical form lodged with the Company or its R & T
Agents on or before August 13, 2014.
(3) In terms of circular no. MRD/DoP/Cir-05/2009 dated 20th May, 2009 issued by Securities and Exchange Board of India
(SEBI), it is now mandatory for the transferee(s) of the physical shares to furnish copy(ies) of PAN card(s) for registration
of transfer of shares. Transferee(s) are requested to furnish copy(ies) of PAN card(s)along with Share Transfer Deed
duly completed and physical share certificate(s).
4.
Shareholders to whom hard copy of Annual Reports have been provided are requested to bring their copies of the Annual
Report to the Meeting. In case of others, copies of Annual Reports shall be made available at the venue of the Meeting.
5.
Shareholders / Proxies attending the Meeting should bring the Admission Slip, duly filled, for handing over at the venue of
the meeting.
6.
In compliance with the provisions of Section 108 of the Companies Act, 2013 and the Rules made thereunder, the
Shareholders are provided with the facility to cast their vote electronically, through the e-Voting platform provided by NSDL
on all the resolutions set forth in this notice. The e-Voting shall commence on August 26, 2014 and end on August 28, 2014.
The e-Voting module shall be disabled by NSDL for e-Voting thereafter. During this period, Shareholders of the Company
holding shares either in Physical Form or in dematerialised from as on July 25, 2014 may cast their vote electronically.
The results declared along with Scrutinizer Report shall be placed on the Companys website and on the NSDL website
within two days of passing of the Resolutions at AGM and communicated to NSE and BSE where the shares of the company
are listed.
For exercising e-Voting facility, the User ID and initial password are provided at the bottom of the Admission Slip cum Proxy
Form and the detailed procedure is enumerated below.
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(i)
Open e-mail and open PDF file viz; HPCL e-Voting.pdf with your client ID or Folio No. as password containing. Please
note the User ID and initial password.
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(vi) Home page of e-Voting opens. Click on e-Voting: Active Voting Cycles.
(vii) Select EVEN of Hindustan Petroleum Corporation LImited
(viii) Now you are ready for e-Voting as Cast Vote page opens
(ix) Cast your vote by selecting appropriate option and click on Submit and also Confirm when prompted.
(x) Upon confirmation, the message Vote cast successfully will be displayed
(xi) Once you have voted on the resolution, you will not be allowed to modify your vote
(xii) Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/JPG
Format) of the relevant Board Resolution/ Authority letter etc. together with attested specimen signature of the duly
authorized signatory(ies) who are authorized to vote, to the Scrutinizer through e-mail hpclscrutinizer@gmail.com,
hpclevoting@hpcl.co.in with a copy marked to evoting@nsdl.co.in.
8
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76
Initial password is provided at the bottom of the Admission Slip cum Proxy Form. Please follow all steps from Sr. No.
(ii) to Sr. No. (xii) above, to cast vote.
In case of any queries, you may refer the Frequently Asked Questions (FAQs) for shareholders and e-Voting user
manual for Shareholders available at the download sections of www.evoting.nsdl.com or call on (022) 24994433.
7.
(a)
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Shareholders holding shares in physical form are requested to advise immediately change in their address, and also
inform their valid E-mail ID, if any, quoting their Folio number(s), to M/s. Link Intime India Pvt. Ltd., R & T Agents at their
address given on point no. (11) below.
(b)
2
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=
>
Shareholders holding shares in dematerialised form are requested to advise immediately change in address and register
their valid E-mail ID, if any, quoting their respective Client ID / DP ID Nos., to their respective Depository Participants only
and not to M/s. Link Intime India Pvt. Ltd or to the Company.
8.
In support of the Green Initiative measure taken by Ministry of Corporate Affairs, Government of India, New Delhi, enabling
electronic delivery of documents and also in line with recent circular Ref. No. CIR/CFD/DIL/7/2011 dated November 05 2011
issued by Securities and Exchange Board of India (SEBI) and under the provisions of the Companies Act, 2013 and the
Rules made thereunder, Company has sent Annual Reports in Electronic Mode to the shareholders who have registered their
E-mail IDs. However, an option is available to the shareholders to continue to receive the physical copies of the documents/
Annual Reports by making a specific request quoting their Folio No./Client ID & DP ID to Company/ R & T Agents.
9.
(a) The Securities and Exchange Board of India (SEBI) vide circular No. CIR/MRD/DP/10/2013 dated March 21, 2013 have
advised all the concerned to use electronic mode of payment for making cash payment to the investors. In the cases
of shareholder/s, where it is not possible to effect electronic payment, SEBI has advised to print bank details on the
dividend warrant instruments issued to them. .
(b) In order to facilitate the shareholders who are holding the shares in Physical Form, our Corporation has hosted various
Forms including e-payment mandate form, on its website www.hindustanpetroleum.com under the menuInvestors &
Sub-Menu Investors Guide. Shareholders can download the requisite form, fill it as per the direction given therein and
forward the same to the R&T Agents at the address given in note no. (11) below along with attachments. Form can
also be obtained from our R&T Agents.
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(c) Shareholders who are holding shares in Electronic Form are requested to contact their respective Depository Participants
(DP) only for updating their bank details. They are also advised to seek Client Master Advice from their respective DP
to ensure that correct updation has been carried out in their record. It may be noted that the bank details data provided
by the Depositories is solely used by the company to effect the payment of dividend. Hence, it is utmost necessary for
shareholders to ensure that the correct Bank details are updated with DPs.
10. Members are hereby informed that Dividends which remain unclaimed / unencashed over a period of 7 years have to be
transferred by the Company to Investor Education & Protection Fund (IEPF) constituted by the Central Government under
Section 205A and 205C of the Companies Act, 1956.
We give below the details of Dividends paid by the Company and their respective due dates of transfer to the Fund of the
Central Government if they remain unencashed.
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06.09.2007
2006-07 (Final)
Oct. 2014
22.09.2008
2007-08 (Final)
Oct. 2015
28.08.2008
2008-09 (Final)
Sept. 2016
16.09.2010
2009-10 (Final)
Oct. 2017
22.09.2011
2010-11 (Final)
Oct. 2018
18.09.2012
2011-12 (Final)
Oct. 2019
05.09.2013
2012-13 (Final)
Oct. 2020
It may please be noted that no claim can be made by the shareholders for the unclaimed Dividends which have been
transferred to the credit of the Investor Education & Protection Fund (IEPF) of the Central Government under the amended
provision of Section 205B of the Companies (Amendment) Act, 1999.
In view of the above regulation, the shareholders who are yet to encash the dividend are advised to send requests for
duplicate dividend warrants in case they have not received/ not encashed the Dividend Warrants for any of the above
mentioned financial years and/ or send for revalidation the unencashed Dividend Warrants still held by them to the Registrars
and Transfer Agents of the Company.
11. The address of Registrars and Transfer Agents of the Company is as follows:
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At the ensuing Annual General Meeting, Dr. Subhash Chandra Khuntia, Shri Pushp Kumar Joshi, retire by rotation and being
eligible, offer themselves for re-appointment.
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5.
The Board, on the recommendations of the Audit Committee, has approved the appointments and remuneration of the Cost
Auditors to conduct the audit of the cost records of the Company for the financial year ending March 31, 2015 as per the
following details:Sr.
No.
1.
2.
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60!
Jer Mansion, 1st floor, 70 August Kranti
Marg, Mumbai 400 036.
Mazgaon, Haybunder, Sewree, Silvassa, Budge, (
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Ramnagar & Chennai Lube Blending Plants and 1103 Raj Sunflower Royal Complex, Eksar
CNG Mother Station at Ahmedabad
Road, Borivali (West), Mumbai 400 092.
Total
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1,60,000/-*
1,35,000/-*
2,95,000/-
* with applicable Service Tax plus reimbursement of out of pocket expenses at actuals plus applicable Service Tax.
In accordance with the provisions of Section 148 of the Companies Act, 2013 read with Companies (Audit and Auditors)
Rules, 2014 the remuneration payable to the Cost Auditors needs to be ratified by the Shareholders of the Company.
Accordingly, approval of the members is sought for passing an Ordinary Resolution as set out at item no. 5 of the Notice
for ratification of the remuneration payable to the Cost Auditors to conduct audit of the cost records of the Company for the
Financial Year ending March 31, 2015. Relevant documents referred in respect of the said item are open for inspection by
the members at the Registered Office of the Company on all working days during 2.30 p.m. to 4.30 p.m. up to the date of
the Meeting.
None of the Directors, Key Managerial Personnel of the Company or their relatives are, in any way, concerned or interested
in the resolution set out at item No. 5 of the Notice.
The Board recommends the Ordinary Resolution as set out at item no. 5 for approval by the shareholders.
*6
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Date
Regd. Office
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2.
3.
3.
4.
5.
6.
7.
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Sales / income from operations
Gross profit
EB?J?A
EB?J?A
2012-13
2011-12
2010-11
2009-10
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` / Crores
188,130.95
142,396.49
114,888.63
` / Crores
?/BEA@P
I/?ABJ?
4,821.78
5,156.44
4,637.09
4,193.18
Depreciation
JIPEJ
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1,934.42
1,712.93
1,406.95
1,164.40
Interest
EEJBE
?/JJIJI
1,412.80
2,224.27
884.00
903.75
?A@?P
HH?@A
569.85
307.81
807.14
823.61
0.05
Net profit
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904.71
911.43
1,539.01
1,301.37
Dividend
H@IB
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287.83
287.83
474.08
406.35
?AHL
HLEB
48.92
46.70
76.91
67.49
?HIH@
?/??L@B
567.96
576.89
988.02
827.53
IBJHA
J/I?HEJ
3,015.45
2,179.48
2,785.93
2,196.53
E/PHBEP
?P/AIBHP
13,158.78
11,824.30
10,017.94
9,365.26
@/BH@EA
AE/AII@I
37,006.21
33,459.00
29,648.39
24,988.37
E/@IE@@
?I/PPAPE
14,457.51
12,609.35
11,003.86
9,681.70
A/JEAA@
EP/L?EEA
22,548.70
20,849.65
18,644.53
15,306.67
@LJ@B
A/@PPHI
5,199.22
4,474.73
3,798.70
3,887.59
P/?ILBJ
4,199.27
3,416.64
3,819.30
2,623.83
Capital work-in-progress
Investments
JVCs & Subsidiary
Others
HIEII
LAL@A
P/ILBHJ
6,427.66
6,953.86
7,515.73
8,763.39
?/PLALL
L/PP@?H
12,738.92
10,344.16
6,984.38
4,086.83
;IPEE@<
;J/LBHAJ<
(3,598.35)
(3,085.28)
(3,195.63)
(1,807.97)
@/H@JEH
A@/?@I@?
47,515.42
42,953.76
37,567.00
32,860.34
E/PBPJ@
?P/B?E?I
13,726.40
13,122.52
12,545.80
11,557.97
Share capital
PIIL
JJL@?
339.71
339.71
339.71
339.71
Share forfeiture
;B?E<
;B@B<
(0.70)
(0.70)
(0.70)
(0.70)
Reserves
E/AAH@L
?A/I@J?P
13,387.39
12,783.51
12,206.79
11,218.96
Borrowings
P/JI@LE
JE/?IAPP
33,789.02
29,831.24
25,021.19
21,302.37
@/H@JEH
A@/?@I@?
47,515.42
42,953.76
37,567.00
32,860.34
?PP?
15.78
16.19
14.75
15.76
2Q8!&:;<
CRUDE THRUPUT
- Mumbai Refinery
@@A
7.75
7.51
6.55
6.96
- Visakh Refinery
@@@
8.03
8.68
8.20
8.80
PIPELINE THRUPUT
?PIL
14.04
13.62
12.98
11.95
MARKET SALES
JBLI
30.32
29.48
27.03
26.27
>
1. Previous year figures have been regrouped / reclassified wherever necessary.
2. 1 US$ = ` 59.92 (Exchange rate as on 31.03.2014).
13
EB?J?A
9[
EB?J?A
` / Crores
2012-13
2011-12
2010-11
2009-10
` / Crores
EHLJP
?/@JJ@@
904.71
911.43
1,539.01
1,301.37
JIPEJ
E/?HHAA
?@?@I
?/BELEB
;JJ?PJ< ;?/LHIP?<
-
1,934.42
763.44
2,970.03
708.00
1,712.93
839.74
5,085.69
1,127.90
1,406.95
694.18
3,177.02
1,486.00
1,164.40
515.68
(1,270.19)
5,270.27
;?I?<
P?@P
;LIJ<
J?BBH
1.85
513.07
(0.18)
(110.35)
(0.19)
1,387.66
(0.19)
204.60
?JBIP
I@PIB
@HEHJ
A/BAH?H
584.62
8,380.14
27.50
9,594.66
(238.33)
9,452.30
703.73
7,889.67
H@IB
PEAH@
?AHL
HLEB
HIBEP
P/?PAIE
;JHJPI< ;E/ELHJB<
287.83
48.92
5,090.31
2,026.34
287.83
46.70
4,620.63
4,210.24
474.08
76.91
4,655.92
3,431.07
406.35
67.49
3,712.68
141.74
LIAJ
P@@@L
926.74
429.26
814.32
1,527.41
I@PIB
A/BAH?H
8,380.14
9,594.66
9,452.30
2,033.99
7,889.67
?/AJBBH
JEE?
A/EHELH
E@@P
PLP@
EAIBL
I/B@HIH
H/PILBJ
?LJBJ
EP/IIJIJ
?IIEI
JPILI
?/A@API
JI/AEJA@
8,386.47
340.29
21,874.41
127.96
87.95
1,356.42
32,173.50
8,948.91
1,321.34
19,233.85
83.52
271.92
1,440.99
31,300.53
8,589.25
3,192.08
15,804.52
70.32
542.00
665.98
28,864.15
7,121.14
564.74
12,583.82
55.41
382.32
0.05
448.54
21,156.02
EIA
B@P
P?EB
??LJB
?LLE
B?@
?BP>?
?B/HPH
2.24
0.42
26.72
96.86
17.23
0.07
0.75 : 1
11,027
2.74
0.48
26.92
77.70
15.06
0.08
0.66 : 1
11,226
3.26
1.08
45.45
98.54
11.79
0.14
0.54 : 1
11,248
3.65
1.13
38.43
78.86
9.62
0.11
0.30 : 1
11,291
* Foreign Currency Monetary Item Translation Difference Account (FCMITDA) as per para 46 of AS-11.
14
EB?J?A
EB?J?A
9[
` / Crores
2012-13
2011-12
2010-11
2009-10
` / Crores
JH/@AL@E EJE/?HHJP
215,666.45
188,130.95
142,396.49
114,888.63
P@AAA
(809.46)
824.29
3,438.78
3,249.96
JH/HAPPL EJE/@IE@L
214,856.99
188,955.24
145,835.27
118,138.59
LPH@
!
(
F
Raw material consumption
?B/JABH@
I?/LIEAL
63,182.62
56,943.23
40,362.01
37,722.89
EA/EE?LP ?AP/?J@LP
128,163.93
109,370.73
85,396.86
62,677.82
Packages
JPPH
E?JEB
183.12
181.67
143.42
136.39
EHB?
?I@H?
156.39
121.41
116.66
174.27
?B@?H
IAEEA
1,093.55
921.87
615.68
473.71
JA/@JJPL EBH/?EJIL
192,779.61
167,538.89
126,634.63
101,185.08
Utilities
$$
7
$
Duties
?/PJ?@P
L/?@HEP
8,918.60
9,592.04
9,182.70
7,588.25
E/PHBEP
?P/AIBHP
13,158.78
11,824.30
10,017.94
9,365.26
?/E?III
@/ELBEI
5,811.43
5,084.76
3,363.69
3,551.24
JJHHA
E/BJBJB
2,525.56
1,583.10
2,017.16
1,617.32
Interest on borrowings
EEJBE
?/JJIJI
1,412.80
2,224.27
884.00
903.75
Dividend
?BEAH
I?AB@
336.75
334.53
550.99
473.84
8
Y )7
?A@?P
HH?@A
569.85
307.81
807.14
823.66
Retained profit
?HIHI
?/??LIL
567.96
576.90
988.02
827.53
$
JIPEJ
E/?HHAJ
1,934.42
1,712.93
1,406.95
1,167.92
E/PHBEP
?P/AIBHP
13,158.78
11,824.30
10,017.94
9,365.26
($
6 7
7
15
BBB
&::9_
EB?J?A
2012-13
2011-12
2010-11
2009-10
A/EP?PI
4,073.41
3,957.80
3,700.04
3,317.66
@?EIJ
674.59
778.77
875.69
1,341.85
: )
Liquified petroleum gas
Naphtha
Motor spirit
A/AEE?I
4,070.66
3,869.06
3,599.97
3,247.14
Hexane
?HEE
19.47
23.45
14.77
16.58
Propylene
?LII
48.85
52.30
41.44
23.21
7
L/AEAEE
8,886.98
8,681.38
8,231.91
7,946.44
AJBB
36.88
37.35
42.67
59.83
AAPEL
567.30
768.24
698.56
744.12
?/JBHBB
1,375.30
1,549.13
1,685.29
1,798.48
?P/L@JBJ
15,459.50
14,216.02
12,328.00
11,747.13
EB@
0.96
1.37
2.25
1.54
?@L?@
175.87
171.00
157.95
121.09
?@/LPBPP
17,615.80
16,743.11
14,914.72
14,472.19
AHE?E
470.94
426.63
413.57
469.67
?/PLBE@
1,794.17
2,243.47
2,008.04
1,778.01
EE@IJ
187.09
220.16
273.76
393.46
?/BB@AP
1,056.13
930.24
810.17
906.41
EHEIJ
306.92
239.39
379.89
306.12
2
6
Furnace oil
Low sulphur heavy stock
Bitumen
Others
7
J/?B@LH
3,344.30
3,633.26
3,471.86
3,384.00
JB/LIAH@
30,318.03
29,484.38
27,032.06
26,272.30
J?BJEB?A
31.03.2013
31.03.2012
31.03.2011
31.03.2010
?BB
101
101
101
101
JP
34
33
32
31
* Including Exports
&("8#5(";
<
Regional offices
Terminals/Installations/TOPs
Depots (including exclusive lube depots)
LB
90
90
93
92
AI
45
45
44
44
ASFs
JP
35
34
32
31
?E/HIL
12,173
11,253
10,212
9,127
Retail outlets
SKO/LDO dealers
?/IJH
1,638
1,638
1,638
1,638
LPG distributors
J/PBI
3,194
2,897
2,633
2,404
AJ@
3.99
3.62
3.28
2.92
16
BBB
(9!8:99*&8(=8(Q
EB?J?A
2012-13
2011-12
2010-11
2009-10
J@LPB
440.60
448.60
253.70
257.80
Naphtha
JHELB
408.97
491.20
390.90
549.30
?/JEHIB
1,357.59
1,182.50
935.40
727.50
Hexane
?@BB
16.65
26.10
12.60
17.60
Solvent 1425
??EB
5.47
8.20
4.10
6.10
E/??LEB
2,229.28
2,156.60
1,596.70
1,558.30
: )
Motor spirit
7
Mineral turpentine oil
A?LB
36.19
40.50
44.20
62.90
PBBLB
536.65
587.10
543.30
580.00
E@EPB
330.93
285.20
69.30
142.10
E/EJAAB
2,201.83
1,979.20
1,902.40
2,211.40
HA?B
84.10
93.40
87.90
46.20
J/?JJHB
3,189.71
2,985.40
2,647.10
3,042.60
JHPHB
361.99
382.40
300.20
347.00
HBALB
847.49
1,018.00
1,034.70
857.80
AEB
(1.39)
8.30
48.20
68.10
I?EEB
631.07
577.40
430.20
559.60
?JPIB
(33.51)
(83.70)
(58.90)
(19.90)
7
?/PPILB
1,443.66
1,520.00
1,454.20
1,465.60
@/?LP@B
7,224.65
7,044.40
5,998.20
6,413.50
ELIB
(54.52)
(116.90)
146.70
19.50
PJAEB
584.66
592.80
505.10
532.10
@/@PLPB
7,754.78
7,520.30
6,650.00
6,965.10
17
000 Tonnes
(9!8:98&"2(=8(Q
EB?J?A
2012-13
2011-12
2010-11
2009-10
AEJJJ
382.75
360.80
281.10
310.05
Naphtha
JJ?BP
251.38
270.00
448.20
734.04
?/JA@IE
1,258.69
1,357.50
1,097.30
932.16
Propylene
?LJP
48.02
52.70
41.90
23.15
7
E/?E?JP
1,940.84
2,041.00
1,868.50
1,999.40
: )
Motor spirit
Mineral turpentine oil
Aviation turbine fuel
Superior kerosene oil
High speed diesel
JBO
Light diesel oil
ABEE
65.73
60.00
57.50
79.87
I?PI@
582.38
640.20
704.90
720.33
J/BB@BB
3,116.26
3,438.00
3,233.60
3,441.39
E?J
0.75
1.00
2.30
1.83
?B?IJ
84.76
83.10
93.00
70.73
J/@IIIA
3,849.88
4,222.30
4,091.30
4,314.15
Furnace oil
HEP@@
1,025.60
1,220.70
1,020.50
1,033.74
?IEEE
183.29
139.30
150.20
340.33
Bitumen
JABBI
394.65
367.20
295.90
328.51
Others
;JL?I<
31.40
26.30
205.80
101.41
7
?/EHHLB
1,634.94
1,753.50
1,672.40
1,803.99
@/?@IHL
7,425.65
8,016.80
7,632.20
8,117.54
@@H
(5.00)
24.50
(28.30)
83.05
7
2
6
PH@@A
607.81
641.00
595.80
595.87
@/@@EA?
8,028.47
8,682.30
8,199.70
8,796.46
18
Directors' Report
TO THE MEMBERS
On behalf of the Board of Directors, I have great pleasure in presenting to you the sixty-second Annual Report on the working of
the Company, together with the Audited Accounts for the year ended 31st March, 2014.
HIGHLIGHTS
` / Crores
2013-14
2012-13
2,32,188.35
2,15,666.45
FINANCIAL
Sales/Income from Operation
6,140.31
4,821.78
Depreciation
(2,188.44)
(1,934.42)
Interest
(1,336.36)
(1,412.80)
2,615.51
1,474.56
Current Tax
744.17
(250.58)
Deferred Tax
117.75
(440.95)
19.82
60.62
61.06
1733.77
904.71
10,191.90
9,682.74
(173.38)
(90.47)
131.48
31.67
(524.87)
(287.83)
(89.20)
(48.92)
11,269.70
10,191.90
30.96
30.32
Mumbai Refinery
7.74
7.75
Visakh Refinery
7.77
8.03
51.20
26.72
119.30
96.86
443.32
405.35
DIVIDEND
Your Directors, after taking into account the financial results of the Company during the year, have recommended dividend of
` 15.50 per share for the year 2013-14 as against ` 8.50 per share paid for the year 2012-13. The dividend for 2013-14, including
dividend tax provision will absorb ` 614.07 crores (2012-13: ` 336.75 crores).
19
Directors' Report
SALES/INCOME FROM OPERATIONS
Your Company has achieved sales/income from operations of ` 2,32,188.35 crores as compared to ` 2,15,666.45 crores in
2012-13.
PROFIT
Your Company has earned gross profit of ` 6,140.31 crores as against ` 4,821.78 crores in 2012-13 and profit after tax of
` 1,733.77 crores as compared to ` 904.71 crores in 2012-13.
INTERNAL RESOURCES GENERATION
The Internal Resources generated were ` 3,618.23 crores as compared to ` 3015.45 crores in 2012-13.
CONTRIBUTION TO EXCHEQUER
Your Company has contributed a sum of ` 36,423.47 crores to the exchequer by way of duties and taxes, as compared to
` 32,173.50 crores in 2012-13.
DIRECTORS RESPONSIBILITY STATEMENT
In terms of Section 217(2AA) of the Companies Act, 1956, your Directors state that:
(i)
In the preparation of the Annual Accounts, all the applicable Accounting Standards have been followed along with proper
explanation relating to material departures.
(ii) The Company has selected such Accounting Policies and applied them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on 31st March,
2014 and of the Statement of Profit & Loss of the Company for the year ended on that date.
(iii) The Company has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with
the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting
fraud and other irregularities.
(iv) These Accounts have been prepared on a going concern basis.
MEMORANDUM OF UNDERSTANDING (MOU) WITH GOVERNMENT OF INDIA
Your Company has been signing a Memorandum of Understanding (MOU) with the Ministry of Petroleum & Natural Gas. The
performance of the Corporation of the year 2013-14 qualifies for Excellent rating basis self-evaluation.
REFINERY PERFORMANCE
During the year, your refineries processed a combined crude thruput of 15.51 MMT (15.78 MMT in 2012-13) with a capacity
utilization of 105% of the installed capacity of 14.80 MMT.
The Combined distillate yield of 74.2% was realized by processing High Sulphur / Low Sulphur crude in the ratio of 59:41.
The Overall MOU Rating for your refineries for parameters Viz. Crude throughput, Distillate yields, Specific Energy Consumption,
Projects, Sustainable development, HSE and R&D stands at Very Good level.
Refineries have achieved best ever production in MS (2,676 TMT) and LOBS (386 TMT).
Gross refining margins of Mumbai Refinery averaged at US $ 5.38 per barrel as against US $ 2.08 per barrel for the year 2012-13.
Gross refining margins of Visakh Refinery averaged at US $ 1.50 per barrel as against US $ 2.08 per barrel for the year 2012-13.
Your Refineries strive to utilize every opportunity to effectively address capacity augmentation/yield improvement. Accordingly,
Mumbai refinery has augmented Propane DeAsphalting (PDA) unit capacity resulting in enhanced Lube Base oil production
and thereby improving distillate yields. Visakh Refinery has carried out augmentation jobs for Propylene Recovery Unit (PRU),
commissioned chiller package and started using bottom cracker additive Fluidized Catalyst Cracking (FCC) unit, which resulted
in reduced production of heavy ends. These efforts have resulted in the yield improvement at Visakh Refinery.
20
Directors' Report
In order to reduce Suspended Particulate Matter (SPM) and Sulphur emissions, your refineries have installed Flue Gas
Desulphurization (FGD) facility. This will enable both the refineries to have flexibility to enhance High Sulphur Crude Processing
as well.
To meet Euro-IV specifications for diesel, your refineries have set up Diesel Hydrotreater Units (DHT) with associated facilities
at both Mumbai and Visakh Refinery. Mumbai Refinery has commissioned the facility during 2013-14. Visakh Refinery have
accomplished mechanical completion of the unit, pre-commissioning/ commissioning activities are in progress.
Your refineries have taken part in the performance Benchmarking study along with the other refiners in the country conducted by
M/s Solomon Associates under the aegis of CHT, the results of which has identified gaps in energy utilization. In order to bridge
these gaps short and long term measures have been identified and will be implemented in a time bound manner.
Mumbai refinery has recorded the best ever Specific Energy Consumption (MBTU/BBL/NRGF) of 75.4 against MOU Excellent
target of 87.0. Similarly, Visakh refinery has also achieved the best ever Specific Energy Consumption (MBTU/BBL/NRGF) of 83.9
against MoU Excellent target of 87.0.
Mumbai Refinery
The year 2013-14 has been remarkable for Mumbai Refinery with the crude throughput of 7.74 MMT as against installed capacity
of 6.50 MMT with capacity utilization of 119%. It has achieved 73.5% Distillate yields and the corresponding Fuel & loss was 6.9%
for the year.
Refinery recorded best ever production of HSD EURO III (2166 TMT), RPO (146 TMT) and LOBS (386 TMT) production through
effective utilization of assets during 2013-14.
Visakh Refinery
Visakh Refinery achieved crude thruput of 7.77 MMT as against installed capacity of 8.30 MMT with capacity utilization of 85%. It
has achieved 74.8 % Distillate yields and the corresponding Fuel & loss was 7.6% for the year.
The refinery recorded best ever production of LPG (423 TMT) and BS III MS (1100 TMT) during 2013-14.
The particulars with respect to Conservation of Energy, Technology Absorption, Foreign Exchange Earning & Outgo are detailed
in Annexure I.
The particulars relating to control of Pollution and other initiatives by Refineries are listed in Annexure II of Directors Report.
MARKETING PERFORMANCE
During the year 2013-14 your Corporation has achieved sales volume (including exports) of 30.96 Million Tonnes as against
30.32 Million Tonnes recorded in 2012-13. HPCL recorded a growth of 4.1% in domestic Sales over the sales volume of the
previous year, and amongst public sector oil companies increased its market share to 20.90% as on 31st March, 2014 from
20.19% recorded in the previous year.
During the year, your Corporation commissioned 723 new Retail Outlets, which include 223 retail outlets in the rural areas taking
the total tally to 12,869 Retail Outlets. Your Corporation achieved a sales volume of 21.3 Million Tonnes and increased its market
share in MS and HSD (combined) by 0.15%.
In the LPG business line, your Corporation achieved a sales volume of 4.205 Million Tonnes and enrolled 39.15 Lakhs new HP
Gas customers taking their total to 432 lakhs as on 31st March, 2014. In order to provide LPG to rural India, your Corporation
commissioned 219 distributors under the Rajiv Gandhi Gramin LPG Vitaran Yojana. Your Corporation also commissioned 95
Regular LPG distributors.
The Direct Sales Business line comprises of Industrial & Commercial (I & C) and Lubes & Greases. Your Corporation achieved a
sales volume of 3.866 Million Tonnes in the I & C segment recording a market share gain of 1.79% (among PSUs). In the Lubes
& Greases segment the sales recorded was 485 TMT with a growth of 15.3% and market share gain of 4.15%.
In the Aviation Business line, your Corporation achieved sales volume of 445 TMT during the year.
21
Directors' Report
In the Natural Gas segment, your company has during the year formed a Joint Venture (JV) company HPCL Shapoorji Energy
Limited (HSEL) with S P Ports Pvt. Ltd for setting up a LNG Re-gasification Terminal at Chara, Gujarat. In addition your company
has taken 11% equity participation in gas pipelines Mehsana-Bhatinda-Jammu-Srinagar Pipeline (MBJSPL) and Mallavaram
Bhopal Bhilwara Vijapur pipeline (MBBVPL) along with GSPL, IOCL & BPCL which is being undertaken by JV Company GIGL
and GITL.
A thruput of 43.28 Million Tonnes was handled by the POL installations and your Corporations pipeline network achieved a
thruput of 15.69 Million Tonnes during the year.
TREASURY MANAGEMENT
The year 2013/14 was a challenging year from Treasury Management point of view. Starting on a stable note during the initial
months, the rupee depreciation against dollar touched a peak of 27% in August 2013 before a series of measures were introduced.
With the high Re depreciation and dependence on imported crude, management of foreign exchange liabilities, exchange rate
variations and cost of funding posed huge challenges as these impact profitability. All these challenges were handled proactively
and effectively and the financial year 2013-14 ended with significant lower interest and exchange variation costs.
VIGILANCE
During the year, the Vigilance Department, continuing with its endeavour to create an environment of proactive vigilance,
carried out interactive sessions with Officials covering various locations. These sessions, inter alia, included topics of vigilance
awareness and functioning, irregularities taking place in various works and aspects of preventive vigilance. The focus was both
on preventive vigilance and investigative vigilance mechanism.
Some of the key contributions relate to reviews in various operating areas such as Project monitoring, Standardization of
Dispensing euipments, IT procurement , vendor rating systems besides increasing the awareness through in house publications
on various topics of business relevance ,field inspections, tender review etc.
INDUSTRIAL RELATIONS
Your Corporation continued its tradition of resolving issues through dialogue and maintaining a collaborative approach with
Unions and workmen and other stake holders. This enabled enhancing productivity norms, redeployment of workmen across
Marketing locations and Refinery Units at Mumbai Refinery & Visakh Refinery for commissioning of new Units/ rationalisation
of Shifts. Regular meetings were held with the representatives of Unions to deliberate on various challenges and opportunities
concerning Organisation as well as workmen.
A Leadership Development Programme for Union Representatives was developed and conducted in collaboration with Centre
for Organization Development, Hyderabad with an objective to enhance the leadership capabilities of our Union Representatives.
30 Union Representatives attended the programme.
OFFICIAL LANGUAGE IMPLEMENTATION
Official Language Implementation has been given utmost importance in the Corporation. Your Corporation was awarded the
prestigious Indira Gandhi Rajbhasha Award for the sixth consecutive year by Home Ministry.
GMO EZ and LPG SBU NZ were awarded Regional Rajbhasha puraskar by Department of Official Language, Home Ministry.
Under the Chairmanship of our C&MD, Mumbai TOLIC was awarded 2nd prize by Department of Official Language, Home
Ministry.
CORPORATE SOCIAL RESPONSIBILITY
Your Corporation has contributed to social development and empowerment of less privileged sections of society by taking
initiatives under CSR. The corporation has aligned CSR with its business and made efforts for holistic growth of communities
located in different parts of the country. The corporation invested ` 23.74 Crores in fields of Child Care, Education, Health Care,
Skill Development and Community Development and have touched lives of weaker sections of society specially SC/ST, women
and children.
22
Directors' Report
CORPORATE GOVERNANCE
The Corporation has complied with the requirements of Corporate Governance as provided under Clause 49 of the Listing
Agreement and DPE Guidelines on Corporate Governance, with the exception of appointment of Independent Directors to the
level of 50% of the total strength of the Board. The matter is being pursued with the Administrative Ministry.
The detailed Corporate Governance Report forms part of this Annual Report separately.
MANAGEMENT DISCUSSION & ANALYSIS REPORT
A detailed Management Discussion and Analysis Report is given separately.
PARTICULARS OF EMPLOYEES
A statement providing the information as required under Section 217 (2A) of the Companies Act, 1956 is given in Annexure III
to this report. The details regarding the number of women employees vis--vis the total number of employees in each group is
also given in Annexure IV.
FINANCIAL STATEMENTS OF SUBSIDIARIES
In accordance with the general exemption granted by the Ministry of Corporate Affairs, Government of India, the Annual Accounts
and related information of the subsidiary companies are not being attached with the Balance Sheet of the Company. The
Company will make available the Annual Accounts of the subsidiary companies and the related detailed information to any
member of the company who may be interested in obtaining the same. The annual accounts of the subsidiary companies will
also be kept open for inspection at the registered office of the Company and that of the respective subsidiary companies.
COST AUDIT
The Cost Audit for the financial year 2012-13 was carried out and the Cost Audit Reports were filed with the Ministry of Corporate
Affairs before the stipulated date of filing.
DIRECTORS
HPCL Board presently comprises of 11 Directors. The Whole Time Directors are Smt. Nishi Vasudeva (Chairman & Managing
Director), Shri Pushp Kumar Joshi (Director HR), Shri K. V. Rao (Director Finance), Shri B.K. Namdeo (Director Refineries).
The position of Director (Marketing) is presently vacant.
The Part-Time Ex-Officio Directors are Dr. S.C. Khuntia and Shri R.K. Singh. The Part-Time Non Official (Independent) Directors
are Shri G.K. Pillai, A.C. Mahajan, Dr. G. Raghuram, Dr. Gitesh K. Shah and Rohit Khanna.
The following are the details of Directors appointment/ cessation:
Shri Anil Razdan and Shri S.K. Roongta who had joined HPCL Board on January 10, 2011 ceased to be Part-Time Non
Official (Independent) Directors of the Corporation effective January 09, 2014 on completion of their tenure of 03 years.
The Board places on record its sincere appreciation to S/Shri Anil Razdan and S.K. Roongta for the valuable services
rendered by them during their tenure as Directors of the Corporation.
S/Shri G.K.Pillai, A.C. Mahajan and Dr. G. Raghuram who have joined HPCL Board on April 09, 2012 continue to be
Part-Time Non Official (Independent) Directors of the Corporation.
Dr. Gitesh K. Shah who has joined HPCL Board on February 26, 2013 as a Part-Time Non-Official (Independent) Director
continues to be a Part-Time Non Official Director of the Corporation.
Shri Rohit Khanna was appointed as Part-Time Non Official (Independent) Director on the Board of HPCL effective
September 27, 2013.
Shri S. Roy Choudhury, Chairman & Managing Director, retired from the services of the Corporation effective February
28, 2014 on attaining the age of superannuation. The Board places on record its sincere appreciation for the valuable
services rendered by him during his tenure as Chairman and Managing Director of the Corporation.
23
Directors' Report
Smt. Nishi Vasudeva, Director (Marketing), was appointed as Chairman and Managing Director of the Corporation
effective March 01, 2014. S/Shri Pushp Kumar Joshi, Director HR, K.V. Rao, Director (Finance) and B.K. Namdeo,
Director (Refineries) continue as Whole Time Directors of the Corporation.
As per the provisions of Section 152 of the Companies Act, 2013, Dr. S.C. Khuntia and Shri Pushp Kumar Joshi retire by rotation
at the next Annual General Meeting and are eligible for reappointment.
ACKNOWLEDGEMENTS
The Directors gratefully acknowledge the valuable guidance and support extended by the Government of India, Ministry of
Petroleum and Natural Gas, other Ministries, Petroleum Planning & Analysis Cell and the State Governments.
The Directors also acknowledge the contribution made by the large number of dealers and distributors spread all over the
country towards improving the service to our valued customers as well as for the overall performance of the Company.
The employees of the Company have continued to display their total commitment towards the pursuit of excellence. Your
Directors take this opportunity to place on record their appreciation for the valuable contribution made by the employees and
look forward to their services with zeal and dedication in the years ahead to enable the Company to scale even greater heights.
Your Directors are thankful to the shareholders for their faith and continued support in the endeavors of the Company.
NISHI VASUDEVA
Chairman & Managing Director
28th May, 2014
24
CONSERVATION OF ENERGY
a)
In an effort to minimize fuel requirement, refinery has organized Energy Management study in crude distillation
units, NSU & Prime G by M/s Energy Consultants. This initiative has resulted in significant fuel savings.
2.
Installation of additional Convection rows in FR furnace had resulting in improved furnace efficiencies and fuel
savings.
3.
Optimization of steam consumption in units viz. DHDS/ISOM and FR and modification of SG 10 super heater has
resulted in lower steam consumptions.
4.
Replacement of Evaporator module for HRSG V has resulted in improved furnace efficiencies.
5.
6.
Periodic safety valves surveys were carried out with ultrasonic leak detector throughout the year resulting in
potential hydrocarbon loss reduction.
7.
Steam leak survey periodically carried out and replaced 961 Nos Steam traps all over the refinery.
Visakh Refinery
1.
Installation of Magnetic Resonators on GTG-3 and GTG-6 has resulted in lower specific fuel consumption.
2.
Achieved zero steam leak in Process Block (CDU-I, CDU-II, CDU-III, VBU, FCCU-I & FCCU-II) and P&U Block. With
this total steam leak reduced to 1500 kg/hr.
3.
FCCU-I condensate recovery system for recovery of condensate from steam tracing trap outlets & flash steam
recovery using thermo-compressor was commissioned.
4.
5.
Antifoulant injection was carried out at SR side of crude/SR preheat exchangers, thus enabling reduced fouling of
exchangers and hence resulting in energy savings.
6.
PFD PCV at CDU-II is replaced with higher capacity control valve and vaporization increased, thereby reducing
heater load.
7.
FCCU-I condensate recovery system for recovery of condensate from steam tracing trap outlets & flash steam
recovery using thermo-compressor was commissioned in April 2013.
25
Operating severity increased in both FCCUs. Catalyst circulation rate maximized. Correspondingly, heater load
minimized in FCCU-I from 6.5 to 3 MMKcal/hr and in FCCU-II from 5 to 2.5 MMKcal/hr.
9.
Identified fouled preheat exchangers in CDUs basis software and cleaning was carried out for sustaining preheat
temperature.
10. Online chemical cleaning of CDUs & DHDS furnaces was carried out, which resulted in reduced stack temperatures
and increased heater efficiencies. This has resulted in potential savings in fuel consumption.
11. Achieved lowest ever SFC of 0.345 MT/MWH with respect to GTG operation, which is lower than previous year SFC
of 0.352 MT/MWH by 2%.
Oil and Gas Conservation Fortnight was observed both at Mumbai and Visakh refineries from 15th
31st January, 2014 to create awareness among the public for conservation of petroleum products.
b)
January
to
Impact of above on energy conservation measures and consequent impact on cost of production of goods
Mumbai Refinery
The above energy conservation measures undertaken during the year 2013-14 have resulted in a savings of 13,449
SRFT/year (standard refinery fuel tonnage per year). This translates to savings of ` 54 crores/year approximately.
The major measures considered for implementation in the future are additional convection rows in FR furnace, increase
steam generation, Hot HVGO routing as feed in NFCCU, Steam trap management for refinery etc.
Visakh Refinery
The above energy conservation measures undertaken during the year 2013-14 have resulted in a savings of 12,086
SRFT/year (standard refinery fuel tonnage per year). This translates to savings of ` 52 crores/year approximately.
The major measures considered in coming years are implementation of air-fuel controls in CDUs, hot feed maximization
to FCCUs, Oil recovery due to insitu processing of sludge, Continuous use of IBH boilers in place of less efficient WIL-8
& BHPV boilers etc.
c)
II)
Efforts made towards technology absorption, adaptation & innovation information is given in Form-B of the Annexure
I to the Directors Report.
b)
Year of Import
Whether fully
absorbed or not
Mumbai Refinery
Solvent Deasphalting(SDA)
2009
No
2009
2011
Yes
No
2010/12
Yes
2009
2009
2012
2013
2013
2013
Yes
Yes
Yes
Yes
Yes
Yes
Visakh Refinery
New type of nozzles in Wash Oil Distributor in Vacuum column
(CDU II / III)
Intelligent pigging of 36 crude line
LOTIS inspection of Naphtha Steam Reformer tube
New feed nozzles for FCCU-I
Flue Gas Desulphurization units for FCCUs
BCA for FCCUs
PRU Revamp Project
26
If not absorbed,
Reasons
Project is under
implementation
Project is under
implementation
b)
FORM A
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY
MUMBAI REFINERY
(A)
2013-14
2012-13
457.30
335.98
342.40
238.59
7.10
6.75
16.30
11.80
188.40
311.74
2,622.80
2,820.00
13.00
7.03
135.50
141.14
520.30
509.23
38,405
36,080
Other/Internal Generation :
i.
Naphtha
Quantity (Thousand Tonnes)
ii.
75.00
21.77
429.10
107.89
57,255
49,567
LPG
Quantity (Thousand Tonnes)
7.80
6.22
44.20
31.64
56,777
50,870
132.50
102.13
527.70
368.48
39,811
36,080
Refinery Gas
27
3.46
5.30
4.42
13,906
12,774
29.70
156.44
168.30
584.50
56,645
37,362
Coke
Quantity (Thousand Tonnes)
(B)
3.80
RLNG
Quantity (Thousand Tonnes)
vi.
2012-13
BH Gas
Quantity (Thousand Tonnes)
v.
2013-14
77.60
75.27
297.90
271.59
38,405
36,080
83.40
83.60
27.20
21.02
22.50
34.62
10.03
9.72
2013-14
2012-13
8.99
6.15
12.84
6.20
7.25
4.96
(A)
(a)
Electricity Purchased
Units (Million KWH)
Total Amount (`/Crores)
Rate Per Unit (Excluding demand charges) (`/KWH)
Electricity Exported (Million KWH)
0.03
0.01
6.33
3.15
501.14
506.13
2,897.89
2,843.41
10.18
9.38
56.90
60.83
231.12
235.61
40,620
38,735
172.93
178.00
Other/Internal Generation :
i.
CPP Fuel
Quantity (Thousand Tonnes)
28
ii.
2013-14
2012-13
957.62
908.53
55,375
51,040
Naptha (DHDS)
Quantity (Thousand Tonnes)
iii.
iv.
27.99
30.36
155.36
155.46
55,501
51,197
205.21
208.93
829.42
814.15
40,418
38,968
Refinery Gas
Coke
Quantity (Thousand Tonnes)
(B)
86.00
79.37
348.21
309.69
40,489
39,018
65.63
63.81
33.17
33.53
26.40
26.02
11.06
9.89
FORM - B
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ADAPTATION & INNOVATION
I)
b)
R&D Projects
An optimization study of FCC unit operation at Mumbai Refinery was carried out and successful field trial was conducted
to establish higher cat/oil ratio operation with improved conversion. This is expected to improve Refinery margins by
about ` 40 Crores per annum.
29
Off Site Laboratory at Devangonthi made fully functional with construction of Pilot Plant facility and major equipments
like TBP, Pot Still, ACER MAT, Hydroprocessing unit and Steam Deactivation unit installed and commissioned.
Developed Innovative Catalyst formulation & Process for improving yields in Vis Breaker Unit. Field trials carried out at
VR have indicated improvement in the distillate yield by approx. 4-5 wt%. Permanent catalyst dosing facilities being put
up and Implementation planned during Qtr-I of 2014-15.
Novel Catalyst developed for Light Naphtha Aromatisation. Process development and scale up in progress. This has
potential for upgrading Naphtha to Gasoline / Petrochemicals.
Developed Lab Scale novel & high-efficient catalysts for Propylene maximization and Olefins reduction with performance
in line with commercial catalysts.
Breakthrough Achieved in isolation of Aerobic Microbe for Butanol production from Renewable Substrate with high
selectivity and conversion to Butanol. LOBS Yield improvement of 2 to 4 wt% across grades is expected. Field trials
planned during Qtr-I of 2014-15.
Performance evaluation of Vendor FCC catalysts for Visakh Refinery carried out, resulting in savings in evaluation
charges.
Agreement made with M/s HMEL for providing R&D Services in FCC / Hydroprocessing units optimization / catalyst
evaluations and Crude oil Assays.
Enhancement of Propylene yield at HMEL FCC Unit by 3 wt% based on Additive/Catalyst formulation and optimization
of unit operating parameters.
HiGee Project: Mechanical fabrication of HiGee unit completed with successful demonstration of liquid distribution
using water. Assembly and installation at site would complete the project - a major milestone in Process Intensification.
Demonstration H2 PSA unit at VR: Basic engineering design package completed and detail engineering is in final
stages. Major orders placed for the unit such as tail gas compressor, pressure vessels and site execution PMC services.
Tail gas compressor which is the major equipment of the unit has been received at VR site. Site works are in progress.
Project with M/s GITAM University, Visakhapatnam on Design and construction of Metal Organic Frameworks
(MOFs) for Storage of Hydrogen successfully completed. 12 novel and high-efficient MOF materials with maximum
Hydrogen storage capacity upto 6-8 wt% were developed.
Project with IIT Delhi on Hydrogen production through Catalytic Decomposition of Natural Gas successfully
completed. An innovative Ni based catalyst system with highest methane conversion of 93% was developed.
Project with IIT Madras on Chemical Mitigation of Carbon Dioxide to Fuels and Chemicals successfully completed. A
novel Titania based photocatalyst with highest-ever CO2 conversion of 2.3% was developed.
Project with GITAM for Air Pollution Studies at Visakhapatnam completed. Report under preparation.
30
Indo US Energy Consortia Projects on Solar Energy and Bio Fuels commenced.
New collaborative R&D project initiated with IIT Delhi titled Fluidized Bed Reactor Studies for Hydrogen Production via
Catalytic Decomposition of Methane with an objective to develop a novel catalytic process for hydrogen production
using fluidized bed reactor with in-situ catalyst regeneration.
b)
PDA unit was revamped and successfully commissioned, which resulted in Capacity increase from 65 to 90m3/hr and
specific energy reduction of about 20% using supercritical Process.
c)
20.1 TMT LSHS sourced from BPCL and processed at NFCCU successfully, converting to high value products.
d)
For the first time, DHDS catalyst sulphiding was done by raw diesel which is an alternative to DMDS. This saved about
22.5 tons of DMDS costing 40 Lakhs and also hazards related to use of DMDS were avoided.
e)
DHDS Catalyst Replacement (R-2 Reactor): Restarted the DHDS unit after replacing catalyst partially in reactor (R2).
After catalyst replacement the diesel product sulfur level achieved on an average of 150 ppm from previous levels of
290-300 ppm.
f)
Facilitated signing of the Sales and Purchase agreement with BPCL for H2 transfer which helped in speedy restarting
of various H2 consuming units such as DUU/LOBS in case of CCR/HGU shutdown.
g)
Study done to accommodate two additional pre-heat exchangers procured under LR VPS revamp with existing pre-heat
circuit. MOC/Scheme for adding 2 new preheat has been completed. Savings ~ 1817 SRFT/annum.
h)
As a yield improvement measure the refinery has installed State of the art technology Catalyst Cooler facility in NFCCU
during the first quarter of 2012. This has resulted in ability to process heavier feed there by upgrading bottoms.
i)
Commissioning of Propane recovery facility from DWO in the third quarter of 2012 has resulted in reduction of propane
intake to refinery substantially.
j)
Optimization activities Viz. Heat Recovery in CCR feed section, Hydrogen Generation Unit thruput and steam
consumption in various operating units were carried out. These undertakings have resulted in reducing the fuel cost.
k)
Implementation of scheme to route Hydrogen rich Purge Gases (94%) from LOUP to NMP III Hydro finer has resulted in
reduced operating cost.
Visakh Refinery
a)
Propylene splitter provided (in PRU) with high capacity ultra-fract trays and compabloc exchangers provided for
condenser & reboiler services.
b)
c)
Hot well off gas amine absorbers (very low pressure amine absorber which is a new technology) commissioned in CDUII & CDU-III. H2S in off gas reduced from ~ 10 vol% to 400 ppm.
d)
Commissioned Chiller package for enhancing LPG recovery from tail gas in FCCU-I GCU. LPG yield increased by 0.6
wt. %. Coalescers on HP liquid and intercooler recycle gasoline commissioned.
31
Commissioned Neutralizer (Ammonia) injection facility to VBU main column. Main column boot water pH improved to
6.5 from 4.5.
f)
Bottoms Cracking Additive (BCA) usage started in FCCU-I in July 2013; 2% reduction in CLO yield observed.
g)
Commissioned PRU after completion of revamp project (Capacity augmentation from 23000 TPA to 65000 TPA).
h)
In position cleaning of pre-heat exchangers was carried out in CDU-I and CDU-II.
i)
j)
k)
l)
Online sulfur analyzer for diesel & viscosity analyzer for fuel oil commissioned and quality give away reduced.
m) APC software and hardware up gradation carried out with latest systems and remote monitoring system for APC
commissioned.
Major Ongoing Projects
a)
b)
Annexure-II
CONTROL OF POLLUTION & OTHER ENVIRONMENT INITIATIVES UNDERTAKEN BY REFINERIES DURING 2013-14
Mumbai Refinery
a)
b)
32
State of the art New Integrated Effluent Treatment Plant consisting of primary, secondary and tertiary treatment sections has
been in operation consistently since 2010 with a design capacity of 300m3/hr. The technology conforms to existing MINAS
(environment standards) and can also cater to further stringent standards in the future. The purified treated water is being
recycled for refinery consumption and has reduced intake of fresh water from the municipal corporation.
Additionally, Mumbai refinery has contributed significantly to Natural Resource conservation by recycling of effluent water.
Water conserved during the year 2013-14 was ~ 565000 KL. Cumulative water recycled since the inception of the Effluent
Treatment Plant is 1,598,251KL thereby saving equivalent amount of Natural Water resource for the community.
d)
Other Initiatives
Rain Water Harvesting Mumbai Refinery has constructed necessary infrastructure and has harvested about
133000 KL of rainwater. Further augmentation of rain water management facility is in progress as a part of Natural
Water Resource Conservation and sustainable development Project including reduction in refinery carbon foot
print.
Ground Water Quality Monitoring Ground water aquifers are monitored for quality (IS 10500: 1991) regularly
with a network of bore-wells spread across entire geographical area of the refinery. Roof top rain water harvesting
has been undertaken in refineries.
Leak Detection and & Repair (LDAR) programme was carried out to identify and control fugitive emissions from
equipment leaks.
Visakh Refinery
a)
b)
c)
d)
Other Initiatives
ISO 14001 ISO-14001 certification renewed. Internal audits and surveillance audits were conducted as per annual
plan.
33
Process Safety Management (PSM) Procedures were released; implementation of the same is in progress in a
phased manner.
MOU between VPT and oil marketing companies renewed for setting up of Tier-I facilities for oil spill response.
Leak Detection and & Repair (LDAR)- LDAR survey completed for all process units and offsite areas towards
monitoring fugitive emissions.
SWRO plant was revived and RO skid old membranes were replaced with new ones. Treated water is being used to
augment fresh water supply.
World Environment Day (June 5) was celebrated and saplings were distributed on the occasion.
Process safety Management A study on Quantitative Risk Assessment is completed by M/s DNV for identifying and
addressing potential process risks.
Green Visakha Program As a part of the initiative 68885 saplings were planted in the designated locations of
Visakhapatnam.
Identification and development of SD projects proposed by various SBUs, approved by the Board.
ACHIEVEMENTS / AWARDS / RECOGNITION:
14th National Award for Excellence in Energy Management 2013 for Energy Efficient Unit by Confederation of Indian
Industry (CII) for Mumbai refinery
Oil & Gas Conservation Fortnight Award 2012 for Furnace/Boiler Insulation Effectiveness by Ministry of Petroleum & Natural
Gas for Mumbai refinery
34
NAME
Remuneration
(`)
Qualification
Experience
(Years)
Date of
Joining
Age
Last Employement
AMBRE G B
Finance Superintendent
28,94,178 SSC/SSLC
39
01-10-1974
60
Nil
APPALA RAJU G
CHARGEMAN-MAINTENANCE
35
21-12-1978
60
Nil
AREKAR V S
Manager - Operations
30,02,406 B.COM
34
28-01-1980
60
Nil
ARVINDKUMAR
SR.ADMIN.ASSISTANT
JAGJIVAN DAS SOLAN
72,58,641 B.COM
34
26-11-1979
59
Nil
29,18,912 BSC
32
01-12-1981
60
Nil
ATHAVALE A D
30,26,575 BSC
30
05-10-1983
60
36
07-02-1978
60
B S SHANKARAPPA
SR LPG OPERATOR
10,29,922 SSC/SSLC
19
20-02-1995
60
B.RAMAKRISHNA
Chief Manager-Operations
30
21-11-1983
53
Nil
10 BANDEKAR PRATIMA
SUHAS
35,30,705 BA
36
21-11-1977
60
Pharchemets, Bombay
11 BAWKAR A S
SR OPERATOR(SG)
23,70,837 SSC/SSLC
39
09-10-1974
60
Nil
12 BELLAM
RAMAKRISHNA RAO
Manager - Finance
50,62,970 B.COM
30
27-03-1984
60
Nil
13 BHATIA RAJENDRA
KISHINCHAND
32
02-03-1982
60
14 BHIMA RAJU R
CHARGEMAN - MAINT
35
19-12-1978
60
Nil
15 BHOSALE L S
37,51,054 BA
40
15-02-1974
60
ESSO
16 C GUNASEKARAN
Station Manager
22
02-03-1992
49
IIT, Madras
17 C.LALIT KUMAR
61,90,173 LLB,M.COM
28
16-12-1985
60
18 C.T.JOSEPH
55,08,014 MA
35
05-04-1979
60
19 CHACKO K C
Manager - Operations
59,91,150 MA
32
01-03-1982
60
20 CHANDALE T R
35,79,909 BSC
34
05-11-1979
60
21 CHAUHAN
KOHIYASINGH
GAMBHISING
LPG OPERATOR
10,77,038 SSC/SSLC,HSC/Inter/PUC
23
01-05-1991
60
Nil
22 CHAWLA G M
Finance Superintendent
20,42,235 SSC/SSLC
35
21-11-1978
60
Nil
23 CHINNATHAMBI R
26
04-07-1988
60
Nil
24 CHOUDHURY S R
77,78,897 BE(Mech)
32
21-06-1982
60
25 CHOUGULE R B
63,67,985 B.COM
36
01-11-1977
60
40,55,480 MA
33
01-07-1981
60
27 DALVI JANARDHAN
SHANKAR
SECURITY GUARD
14,25,972 SSC/SSLC
22
09-04-1992
60
Nil
28 DALVI N D
Administrative Superintendent
29,18,837 SSC/SSLC
34
01-09-1980
60
Nil
29 DAMLE DEEPAK
PURUSHOTTAM
Senior Manager - IS
29,09,584 B.COM
37
01-06-1977
60
30 DAS PROTAP CH
13,09,138 SSC/SSLC
32
01-12-1981
60
Nil
31 DESAI P G
JR.PLANT OPERATOR
16,50,594 SSC/SSLC
35
20-06-1979
60
32 DESHPANDE D K
63,60,385 BE (Chemical),DMS
35
18-12-1978
60
33 DESHPANDE S N
37,80,791 B.COM
39
14-10-1974
60
Nil
34 DHAS B A
33
04-02-1981
60
35 DHODIA RANCHOD
KIKU
Senior Manager
67,15,087 BSC
34
20-09-1980
60
T.R.O.1,Yashkamal, Baroda
36 DHURVE A S
13,44,968 SSC/SSLC
33
01-06-1981
60
Nil
37 DIPAK KUMAR
BANDOPADHAYA
Administrative Superintendent
30,44,793 BSC
30
23-06-1984
60
Nil
38 DIVE S B
PLANT-OPERATOR
30
01-10-1983
60
Nil
39 D'SOUZA R R
37,14,055 BA
39
09-10-1974
60
Nil
31
08-11-1982
58
K.C.C.Khetrinagar
41 GAVANKAR H D
Administrative Superintendent
35,77,580 SSC/SSLC
38
19-12-1975
60
42 GAWARE POPAT N
25
17-10-1988
60
Nil
43 GHADGE B S
25,46,158 BA
34
01-04-1980
60
44 GHARAT A D
26,35,571 SSC/SSLC
35
23-01-1979
60
35
NAME
Remuneration
(`)
Qualification
Experience
(Years)
Date of
Joining
Age
40
22-11-1973
60
Last Employement
45 GHEVDE P S
32,48,531 SSC/SSLC
46 GHOSH JOYDEV
Operations Superintendent
24,57,904 BA
28
24-10-1985
60
Nil
47 GHOSH PRIYA
MADHAB
Fitter
19,54,032 HSC/Inter/PUC
31
01-11-1982
60
48 GUNASEKARAN R
31,35,611 B.COM
35
12-09-1979
60
Nil
42,12,776 SSC/SSLC
42
01-11-1971
60
Esso Inc
31
15-04-1983
53
Nil
51 INDULKAR S Y
34,70,422 BA
32
23-12-1981
60
Nil
52 IYER R R
50,83,198 ITI,B.COM
40
11-09-1974
60
20,15,511 B.COM
32
02-12-1981
60
54 JEVENIUS TOPPO
Finance Superintendent
26,01,367 BA
27
28-05-1987
60
55 JIBKATE R P
Sr.Mobile Assistant
20,69,046 HSC/Inter/PUC
30
12-03-1984
59
56 JOSHI HARSHALA S
24,55,514 BA
35
23-10-1978
60
Nil
57 K M NAIR
28,94,199 B.COM
34
03-07-1980
60
Nil
58 KAMATH G G
31,21,409 SSC/SSLC,BA
41
18-09-1973
60
Nil
59 KAMTHE G M
24,17,046 SSC/SSLC
32
17-05-1982
60
60 KASABE RAMESH
DAGADU
Manager - Aviation
63,32,052 B.COM
35
01-12-1978
60
Registar of Compnies
61 KATKAR
RAMCHANDRA N
29
10-12-1984
60
Nil
62 KATKE S S
29,95,168 BA
33
07-09-1981
60
Nil
63 KATPARA DHIRAJLAL
V
28,43,902 BA
32
04-01-1982
60
Nil
31,44,275 BSC
32
01-09-1982
60
65 KAYAL DIPAK
Manager - Operations
51,78,246 BE(Mech)
35
08-03-1979
60
66 KHANDKAR R S
21,64,502 B.COM
35
01-08-1979
60
67 KHEDKAR B B
32,06,231 BA
33
13-10-1980
60
Shipping Corporation
68 KHERGAMKAR
NIRMALA SUDHIR
Manager - HR
45,42,786 BA
34
02-01-1980
60
Nil
69 KOLHE GIRDHAR
NATHU
Manager - Production
38,85,921 BSC
31
23-05-1983
60
Atuleena Chemicals
70 KOTAGIRI MURALI
Director - Refineries
38
16-02-1976
60
71 KRISHNA RAO T
Manager - Maintenance
28,33,573 SSC/SSLC,ITI
Machinist
35
04-01-1979
60
Nil
72 KULKARNI P T
44,79,239 BSC,DBM,DMM
40
06-12-1973
60
73 KUMAR DALJIT
COMCO Officer
28,75,923 BA
27
11-12-1986
60
Nil
74 KUMAR G N
SENIOR ADMINSTRATIVE
ASSISTANT
31
10-11-1982
60
Nil
75 KURELLA
GANESWARA RAO
32
22-03-1982
60
76 L R MENDON
18,98,168 SSC/SSLC
34
11-02-1980
60
Nil
77 LABAN K
CHARGEMAN - OPNS
36,98,314 SSC/SSLC
35
26-06-1979
60
Nil
78 LADKE RAMESH
RAMRAO
32
03-11-1981
60
79 LIBEIRO JOSEPH
SYLVESTER
DGM - Development
43,24,125 BSC
38
27-10-1975
60
80 LODIWALE V R
30,26,246 B.COM,MA
30
02-05-1984
60
81 LOKREY SHOBHA
PRADEEP
35,10,127 BA
31
01-02-1983
60
82 MAHESHWARI L N
33
12-12-1980
60
83 MAHESWARASARMA
K
CHARGEMAN - OPNS
31
14-02-1983
60
84 MALHOTRA S C
60,52,245 DEE
36
07-04-1978
60
36
/NCTVT
NAME
Remuneration
(`)
Qualification
Experience
(Years)
Date of
Joining
Age
Last Employement
85 MANE DATTA T
MOBILE ASSISTANT
16,89,073 SSC/SSLC
30
27-12-1983
60
Nil
86 MANIKYALA RAO G V
26,07,723 SSC/SSLC
31
01-09-1983
60
87 MISHRA
SURESHCHAND
LALTAPRASAD
38
03-03-1976
60
Nil
88 MOHAN RAO I
30,17,067 SSC/SSLC,ITI
Machinist
35
20-12-1978
60
Nil
89 MOMIN HARUN B
23
12-04-1991
60
Nil
90 MORE J Y
21,67,131 BA
29
07-12-1984
60
Nil
55,52,961 BSC,MA
36
15-06-1978
60
Nil
92 MUKADAM Y N
25,31,286 BA
34
22-07-1980
60
Nil
93 MUKHERJEE B
Director - Finance
49,57,948 BSC,FCA/ACA
35
08-03-1979
60
94 MULANI INUS
CHHABULAL
JR PLANT OPERATOR
14,92,163 SSC/SSLC
29
18-12-1984
60
Nil
95 NAIR N S
64,10,836 BSC,LLB
36
20-03-1978
60
96 Nalini Aneja
Finance Superintendent
14,84,124 BA
28
17-09-1986
57
Nil
97 NARASIMHAM M
Dy Manager - Maintenance
30,36,606 SSC/SSLC
35
18-12-1978
60
98 NASRULLAH
MOHAMMED
62,39,193 BE(Mech),MS
35
24-09-1979
60
Siddaganger Institute of
Technology Tumkur
/NCTVT
99 NURANI S S
40,16,390 BSC
34
08-05-1980
60
100 PATABALLASHYAM
PRASAD
CH SECR ASST
17,28,157 B.COM
21
25-01-1993
46
Nil
40,71,023 BE(Mech)
34
10-03-1980
60
26
15-07-1988
60
Nil
27,48,549 B.COM,FCA/ACA
19
01-06-1995
47
104 PAWAR H A
14,93,273 SSC/SSLC
29
05-01-1985
60
Nil
14,92,792 SSC/SSLC
24
29-03-1990
60
Indian Army
24
23-05-1990
60
Manager - Finance
11,04,419 B.COM,FCA/ACA
20-10-2004
32
Nil
Senior Manager-IS
42,05,685 BA,DMM,PGDPM
38
15-10-1975
60
109 PRADHAN O P
ED-PCPIR Project
53,39,516 BSC,DMIT,MBA
33
05-12-1980
60
Administrative Superintendent
26,39,038 BA,LLB
40
21-09-1974
60
Nil
23
15-12-1990
60
112 PRASAD S S
30,71,241 BSC
33
22-05-1981
60
Dy Manager - QC
30,59,747 BSC,LLB
30
01-08-1984
60
Nil
26
04-04-1988
60
36
01-05-1978
60
Manager - Finance
45,88,694 B.COM,DAM
32
02-04-1982
60
OPERATOR
30
15-02-1984
57
Nil
15,68,400 HSC/Inter/PUC
23
01-04-1991
60
119 RAMACHANDRAN K
23,64,457 B.COM
35
09-01-1979
60
Nil
57,17,910 LLB,PGDBM,M.COM
40
05-04-1974
60
64,66,290 BSC,FCA/ACA
32
19-10-1981
60
122 S A KHANVILKAR
29,17,137 SSC/SSLC
31
19-05-1983
60
Nil
123 SAHA P K
Maintenance Technician
32,31,607 SSC/SSLC
38
01-07-1976
60
Nil
124 SAKAT S B
Finance Superintendent
18,20,221 SSC/SSLC,BA
28
15-07-1986
60
Nil
42
04-11-1971
60
Nil
126 SALI A S
SR.ELECT.CUM OPERATOR
32
16-11-1981
60
127 SANAYE S R
SR. Plantoperator
27,05,511 SSC/SSLC
32
08-02-1982
60
Nil
128 SANE R A
66,76,054 BSC
35
03-09-1979
60
Nil
129 SATYANARAYANA CH
Engineer - Maintenance
30
16-07-1984
60
130 SAWALE D Y
37,90,858 MA
31
20-06-1983
60
Nil
17,16,397 SSC/SSLC
37
05-01-1977
60
37
NAME
Remuneration
(`)
Qualification
Experience
(Years)
Date of
Joining
Age
Last Employement
35,81,246 BSC
38
08-06-1976
60
133 SHAH M K
53,27,867 B.COM
40
01-02-1974
60
134 SHAH P P
24,00,710 SSC/SSLC,B.COM
33
06-11-1980
60
Nil
49,28,858 MSC
34
12-10-1979
60
Nil
27,50,905 DME
43
01-09-1971
60
Nil
19,85,348 BA,MBA
29
04-07-1985
59
138 SONI B B
Station Incharge
42,13,061 MA
40
17-10-1973
60
Nil
139 SOVITKAR
ANILKUMAR
JAIKUMAR
39,08,435 BSC,DBM,DCM
38
01-04-1976
60
SR F&S INSPECTOR
22
09-04-1992
60
141 SUBRAHMANYAM K
CHARGEMAN-MAINTENANCE
35
31-08-1979
60
142 SUBRAHMANYAM U
CHARGEMAN - MAINT
33
08-01-1981
60
A P Electrical Equipment
Corporation
143 SURESH CH S
33,29,133 B.COM
33
01-04-1981
60
144 SURYAMOHAN S
CHARGEMAN - MAINT
35
19-12-1978
60
145 SURYANARAYANA J
CHARGEMAN - MAINT
32
14-12-1981
60
146 SUTAR D B
33
01-09-1981
60
57,37,993 BSC,BE(Civil)
33
01-10-1980
60
Atkins Planning/DCL
148 T J MATHAI
16,45,136 HSC/Inter/PUC
21
22-07-1993
60
Indian Army
149 TAMBOLI S G
49,88,297 BSC
35
09-08-1979
60
Operations Superintendent
21,22,505 M.COM
29
16-09-1985
60
Nil
44,23,593 BA
40
12-11-1973
60
41,91,830 BSC
36
20-12-1977
60
33,98,621 B.COM
34
18-07-1980
60
Nil
154 VADERA V J
34,14,347 SSC/SSLC,B.COM
38
09-02-1976
60
Nil
155 VALENDRA J D
21,57,200 SSC/SSLC
40
15-04-1974
60
Indian Airlines
156 VEERRAJU D
SUPERINTENDENTMAINTENANCE(ELE
31
25-08-1983
60
157 VIG J P
50,89,963 M.COM
31
18-05-1983
60
158 VISHWAKARMA
JAWAHAR LALL
34
28-01-1980
60
159 VISHWEKAR U K
40
01-08-1974
60
29
10-12-1984
60
Nil
161 YADAW J V
28,18,639 BA
38
03-05-1976
60
Nil
Annexure - IV
STATEMENT SHOWING WOMEN EMPLOYEES AS ON MARCH 31, 2014
Group
Total No. of
Employees
No. of Women
Employees
% of Women
Employees
5,290
470
8.88
B*
5,531
389
7.03
37
2.70
TOTAL
10,858
860
7.92
HPCL has no posts classified under group B as the entry in non-management grades has been re-classified in group C
effective 1.1.1994.
38
39
40
41
42
43
44
45
46
47
48
New Tank Truck gantries along with automations at Bhatinda, Akola, Paradeep, Ajmer, Jaipur, Bareilly and Amousi.
Mechanical completion of Additional product tankages at Paradeep terminal (23400 KL), Ajmer (16700 KL) and Kolkata
terminal (6700 KL).
Construction of new green field Rail fed depots at Bhita (near Patna) & Bokaro has been mechanically completed and
will be commissioned soon with completion of respective siding connectivity jobs by Indian railways.
Innovations
The most prolific innovation that was implemented in the year 2013-14 was Optical Fibre Communication (OFC) Based
Pipeline Intrusion Detection System for Mumbai-Pune-Solapur pipeline. HPCL received international recognition for
implementation of this project, as it was honoured with American Society of Mechanical Engineers (ASME) Global
Pipeline Innovation Award 2013 by ASME Pipeline Division, USA
HPCL for the first time adopted the Truss-less Roofing System for its new Lube Warehouse and Engineering
Warehouse at its Loni (Pune) Terminal. Major advantages of truss- less roofing over conventional trussed roofing include
instant installation for Speedy Construction, 100% Leak-proof and highly resistant to damage and corrosion and zero
maintenance costs.
Safety at Oil Marketing Terminals- HPCL has implemented first of its kind in Oil Terminals/Depots in India ,an innovative
Wireless Remote Position monitoring system for Open/Close status of Dyke Valves in Oil Tank farms at its 64 marketing
terminals and Depots.
49
50
Health
HPCL firmly believes occupational and personal health of all employees at all manufacturing sites as well as at its offices
is vital for excellence in overall performance. HPCL has been maintaining state-of-the-art Occupational Health Centers
(OHC) within the premises of both refineries with a view to give immediate attention to the employees/contractor
workmen. Besides emergency medical services, the OHCs also offer preventive and curative health services to
employees. These OHCs are equipped with state-of-the-art diagnostic and therapeutic equipment and are manned by
qualified occupational health specialists. Some of the new initiatives undertaken viz, i) Life style modification program,
ii) Basis life support, iii) Free health check-up camps for contractor workmen.
Safety
Safety is one of the foremost priorities and HPCL is committed to making continued efforts to recognize hazards
through Job Safety Analysis (JSA), assess health and safety risks in operations through Hazops and taking steps
to mitigate those risks to enhance safety performance. Managing health and safety of the people who work, both
directly and indirectly, continues to be the highest priority. The focus is on enhancing safety culture, contractor safety
management, risk assessment and training. Key learning from the past incidents occurred at the sites are disseminated
to the employees & contractors through daily talks / training programs, newsletters and websites etc. which improve
safety process.
Environment
HPCL refineries are committed to ensure environmentally sustainable and responsible operations to achieve highest
standards of environmental excellence and are ISO-14001 certified. All pollution abatement facilities e.g. effluent treatment
plants, air emission control implemented with state of art technologies and waste disposal facilities are maintained and
operated in line with the industrial best practices. New initiatives for improving safety have been implemented in the
Refineries viz, i) Trade specific trainings to contractors, ii) Safety huddle talks, iii) Process safety management (PSM)
implementation, iv) HSE index evaluation and v) Environmental Audits as per OISD Guidelines -212.
Sustainability Development
During the Financial year 2013-14, HPCL published 2nd Sustainability report with people centred theme. In the
financial year 2013-14, HPCL completed Sustainable development projects of electrical energy audits at 13 locations,
solar installation at Lab building in Mumbai Refinery and improved treated water output at Mumbai and Visakh Refinery.
During the FY 2013-14, generation of 563 lakh kilowatt-hour (KWH) of wind energy was achieved. Due to various
initiatives taken for energy conservation and greenhouse gas emissions reduction, HPCL achieved significant carbon
footprint reduction, especially at two of the locations where carbon footprint reassessment was done. Around the year
numerous workshops and training programs with internal and external stakeholders were conducted on business
sustainability. A total number of 722 stakeholders including employees were consulted through a structured process.
Green belt development projects have been taken on pilot basis for reduction of Carbon footprint in the locations.
During the year 2013-14, HPCL invested ` 6.2 crore on various Sustainable development projects. Going forward,
assessment study on Resource management at locations will be conducted.
Rain water harvesting system has been implemented in Visakh-Vijaywada -Secunderabad Pipeline (VVSPL), VisakhRajahmundry and Mundra Delhi Pipeline (MDPL) Awa, which has resulted in reduced dependence on external water
supply and increase in horticulture in these areas.
Solar Lighting system has been implemented at 20 Cathodic Protection (CP)/ sectionalizing valve (SV) Stations of VVSPL
and at Motor Operated Valve (MOV)-4 &Talegaon of Mumbai Solapur Pipeline (MPSPL). This has resulted in usage of
green and clean power which is not only environment friendly but has reduced consumption of diesel in DG sets.
HPCL is also developing an internal ERP portal for data compilation for Sustainability report generation. This will help
in analysing the performance under resource Management and enable bench-marking for all the locations under both
marketing and refinery SBUs.
51
New Initiatives:
A multitude of IT enabled solutions have been developed & implemented to help managers do their job effectively. ERP
platform has made possible development of real time interfaces to the IT enabled systems of HPCLs various business
partners. Various such new initiatives have been implemented and sustained efforts continue to bring in more of these
to reality.
HPCL has put in place a business intelligence system. This system extracts data from various transactions systems,
processes the same and stores it in the data warehouse. This processed information is made available to the business
users for informed decision making.
In house e-procurement system has been rolled out across the Corporation and is being used by various purchasing
authorities in all SBUs and functions. The targets of e-procurement as laid down by Central Vigilance Commission
(CVC) and MoP&NG have been achieved by during the year. The system has also been enhanced to handle specialized
procurement requirements of lubes SBU, for transportation tenders and to auto-upload the tender details in Govt. of
India (GoI) portal for Central Public Procurement Portal (CPPP). The use of the system ensures substantial savings in
cost of procurement in terms of tender hosting charges and procurement man hours. It also ensures Data security with
complete audit trail as well as conformance to CVC guidelines, complete integration with ERP system and results into
improved cycle time from Purchase Requisition (PR) to Purchase Order (PO). HPCL is the only company among the
major PSUs to have its own e-procurement platform.
HPCL has introduced centralized payment system through work flow for recording receipts, by building a library of
the purchase orders and integrating image processing software to ERP system. This has made possible online review
and control for disbursement of payment. The system would significantly reduce the payment cycle times and would
provide for visibility of all documents related to the payments including the vendor documents in the ERP system itself.
52
53
HUMAN RESOURCES
The Human Resource (HR) function at HPCL is an integral part of the business, aimed at actively conceptualizing and implementing
contemporary and customized HR initiatives, policies and practices in line with organizational vision and HP FIRST values.
To achieve the outcomes envisaged as part of strategy and long term focus, various strategic initiatives were undertaken during
the year 2013-14. HPCL has always believed that people are at the core of its business and building their capabilities is the
foremost organizational imperative.
HPCL has embraced the philosophy of developing capability of workforce, focussing on leadership development for robust
succession planning, managing the diversity of workforce, enhancing employee engagement levels, productivity improvement,
maintaining sensitivity towards statutory compliances and also towards health, safety and environment issues. HPCL has taken
a significant step towards driving sustainable growth by creating an ecosystem of people, culture, technology and opportunities
by establishing an Apex Innovation Council.
HPCL continues to invest in young talent and encourage diversity in workforce as diversity comes with its own inherent
advantages. HPCL also has a tradition of respecting values and celebrating the achievements of its employees.
z
Leadership Development
Focus on skill development and capability building of employees is the epicentre of endeavours and interventions at
HPCL. Succession planning is a process for identifying and developing internal people with the potential to fill key
business leadership positions in the organization. Succession planning increases the availability of experienced and
capable employees who are prepared to assume these roles as they become available.
In a continuing effort and pursuance towards creating future leaders, Project Akshaypath was launched in October 2013.
Akshaypath is a Leadership Development Program for Senior / Middle Management Officers. The program involves
multiple methodologies like executive coaching, 360 Degree Feedback based on Emotional and Social Competency
Inventory, Classroom sessions by the experts, experiential learning through mentoring opportunities and group projects
etc. are all entwined together and deployed in well designed, co-ordinated and aligned manner.
The program has 101 executives of the Corporation as Mentors who in-turn are mentoring around 300 mentees. The
program has regular feedback loops, defined milestones and measurement mechanisms to gauge the progress
towards leadership competencies.
In addition, the Corporation also nominates Officers in senior management grades for Advanced Management Programs
in India and abroad on regular basis for acquiring critical leadership attributes required at senior Management levels.
54
Capability Building
The goal of training at HPCL is to create a profound impact on behavioural and technical competencies. The focus is on
creating specific action steps and commitments that focus peoples attention on incorporating their new skills and ideas
at work and thus is a strategic partner to business. Apart from enabling employees to realize their full potential through
innovative initiatives and progressive learning techniques, the key focus areas of the capability building department
include enhancement of competencies, strengthening the leadership pipeline, cultural interventions to enhance
collaboration and leveraging technology for Learning and Development.
HPCL achieved figures of 4.15 man-days of technical & behavioral training programs for the management employees.
Further, 10 Nos. of wellness programs were conducted for 200 officers through in house and external faculty and
10 e-learning modules were introduced to the officers during 2013-14.
State-of-the-art e-Learning Centre has been established at HPs Management Development Institute at Nigdi which
has the best of information technology and learning resources.
Samvad(LPG)
HR (Marketing) team also covered over 2600 LPG distributorship staff across India, through a training module
developed in 9 different regional languages, focusing on customer handling, grievance redressal, personal and
professional conduct, etc.
Performance Management
Performance Management initiatives seek to enforce a High-performance culture in the company. Hence it is the
continual endeavour of the department to establish systems and processes which are robust, transparent and userfriendly.
55
Yuvantage
A unique initiative towards ensuring holistic development of Youth at HPCL was launched under the brand name
YUVANTAGE, which initiated year-long competitions where 400 young officers participated in 100 teams at the
events organised at 10 locations pan-India and helped in increasing bonding among the officers.
HP Gaurav - 2013
HP Gaurav award has been initiated for non-executive employees to recognize and reward outstanding and
exemplary performance in the course of their duties. A total of 79 Non-Management employees were bestowed
with this prestigious award during the year.
56
Centralised HR Services
HR departments unique initiative of Centralisation of HR Services which came into existence in April 2013 has
redefined the internal customer satisfaction process by leveraging technology. Almost all the employee benefits are
processed through this centralised Hub on pan-India basis and approximately 1.6 lakh transactions were handled
during 2013-2014.
Various welfare programs such as distribution of food items, medical check-up camps, free drinking water
facility, eye check-ups, distribution of spectacles etc. were conducted
Food items and water bottles to devotees arriving at Bhima Koregaon were distributed on the occasion of
Memory day which is observed annually on January 1, 2014 at Pune.
Jayanti Celebration & Cultural Programme on the occasion of Birth Anniversary of Bharat Ratna Dr. Baba
Saheb Ambedkar at Sri Shanmukhananda Hall, Matunga, Mumbai on April 2013.
1531 numbers of scholarships were granted to SC/ST/OBC/PWD students for Graduation and Post-Graduation
Studies.
5 training programs on Presidential Directives on Reservation Policy for SC/ST in the matter of Recruitment and
Promotion were conducted.
57
Child Care
During 2013-14, HPCL has taken up two projects, ADAPT (Able Disable All People Together) and CHILDLINE. Project
ADAPT supports education and therapy needs of the children with disabilities and make an attempt to bring them into
the main stream schools and give them equal opportunities for education and growth with the larger aim of inclusive
development. Under Project CHILDLINE constant efforts are being taken to rescue, rehabilitate and repatriate children
in risk situations. The Childline Van which works in three major cities of Delhi, Kolkata and Mumbai also acts as a tool
for outreach programs.
Health Care
HPCL has undertaken following initiatives in the area of Healthcare:
58
Suraksha
Project Suraksha aims at Prevention of HIV+ and creating awareness amongst the Long Distance Truckers (LDT)
who are on the highways, and are considered to be high risk population. HIV+ clinics are opened free of cost for
the truck drivers for diagnosis of STI and treatment through the network of Khushi clinics.
Rural Health
The Rural Health Program is implemented with specific purpose of providing free rural health care services by
operating Mobile Medical Units (Vans), through Reach In approach in the underprivileged areas of the rural
community.
Education
HPCL has undertaken following initiatives in the area of education:
Nanhi Kali
Project Nanhi Kali provides quality education to girls (mostly first generation learners) from economically
disadvantaged families through academic support that empowers them to make a success of their schooling
experience, material support including uniforms, etc., to go to school with dignity and social support by sensitizing
the community on gender equity. HPCL has taken care of 7552 Nanhi Kalis during the year.
Unnati
Project Unnati aims to equip new generations with IT knowledge by providing time bound computer training
programs and personal computers to students in semi-urban and rural schools so that they can contribute to
national development with a progressive attitude. During the year 4100 students were trained in computer basics,
including MS Office free of charge and the training duration is four to six months. Train the Trainer model where
the teachers in schools are also trained has been the most important aspect of the project and have ensured the
sustainability of the project.
59
PSU Award 2013 by Governance Now for Overall Growth & Competitiveness under Navaratna Category from
Honble Minister for Heavy Industries & Public Enterprises.
2.
Readers Digest - Trusted Brand Gold award in Petrol Station category - for 8th consecutive year.
3.
Greentech Gold Award for Outstanding Achievement in Best HR Strategy by Greentech Foundation at 3rd Annual
Greentech HR and Corporate Governance Conference 2013
4.
Gold Stevie Winner in Human Resources Category at the 10th annual IBA awards at Barcelona Spain
5.
Golden Peacock Innovative Product/Service Award for the year 2014 for Project Utkrisht - A joint productivity
improvement initiative of Operations & Distribution Department and HR.
6.
Best Overall Safety Performance Award by Oil Industry Safety Directorate (OISD) under POL Marketing Organisations
category, for Operations & Distribution, for the 4th consecutive year.
7.
Golden Peacock Award for Corporate Governance for the Year 2013 for its excellent practices in Corporate Governance.
8.
Golden Peacock Special Commendation Award for its contribution towards Corporate Social Responsibility.
9.
ASME Global Pipeline Award for innovation for implementation of OFC Based Intrusion Detection system for MumbaiPune-Solapur Pipeline.
10. Safety award from OISD for the 4th consecutive year for Mundra Delhi Pipeline.
11. National Award for Excellence in Cost Management - 2013 Second Runner-up in the category of Public Manufacturing:
Organisations (Large) .
12. CIO 100 Efficient Enterprise Special Award for implementation of Accounts Payable Automation systems.
13. Indira Gandhi RajbhashaPuraskar for the 6th consecutive year for best official language implementation among
Public Sector Enterprises in India for outstanding achievements of the Corporation in the realm of Official Language
Implementation in B region.
14. FICCI CSR Award for 2012-13 in PSU Category for its exemplary work in Corporate Social Responsibility.
15. Civic Award by Bombay Chambers of Commerce and Industry in Category of Sustainable Environmental initiative.
16. Maharashtra Safety award for 7th consecutive year for MPSPL Trombay, and 6th consecutive year for both MPSPL
Khopoli and MPSPL Talegaon.
17. Effectiveness in Boiler & Furnace Operations 2nd prize for Mumbai Refinery from MOP&NG & Centre for High
Technology.
18. National Institute of Personal Management (NIPM) National Award runner-Up (under Category A) for Best HR
Practices 2013.
19. Best Use of Raw Space for Exhibition Stall runner-up at Petrotech 2014. The prestigious award was handed over by
Honble Minister of P&NG.
20. JCB QCIDM Award acknowledging our association on metrics Quality, Cost, Innovation, Delivery & Management.
21. BOSCH Service Award in appreciation of the quality of services and products.
22. Best Supplier Award as a recognition of the quality of service and products by M/s TAFE Motors & Tractors Ltd.
(TMTL).
60
25. Greentech CSR Awards in Silver Category for Mundra-Delhi Pipeline and Visakh-Vijaywada-Secunderabad pipeline.
26. FICCI Sustainability Award for excellence in safety health and environment in petrochemicals for 2013 for Mundra
Delhi Pipeline.
CORPORATE GOVERNANCE
A separate segment on Corporate Governance forms part of this Annual Report. However, it would be relevant to point out
here that the Corporation is giving utmost importance to compliance with Corporate Governance requirements including
compliance of regulations, transparent management processes, and adherence to both internal and external value norms and
has implemented a robust grievance redressal mechanism.
z
Integrity pact
The Corporation has complied with Integrity Pact (IP) to enhance ethics/ transparency in the process of awarding contracts.
An MOU has been signed with Transparency International on July 13th, 2007. HPCL has implemented the Integrity Pact
with effect from September 1st, 2007. The Integrity Pact has now become an integral part of procurement process for all
tenders above ` 1.0 crore.
RISK MANAGEMENT
HPCL has put in place a properly defined Risk Management framework. This system is implemented as an integral part of business
processes across the entire HPCLs operations and includes recording, monitoring and controlling internal enterprise business
risks and addressing them through informed and objective strategies. The Company has engaged the services of independent
experts to facilitate the detailed exercise and ensuring the effectiveness by adopting best practices in Risk Management.
As part of effective implementation of the Risk Management framework, Risk Management Steering Committee (RMSC) continues
to provide direction and guidance. The Company has in place mechanism to inform Board Members about the risk assessment
and minimization procedures and periodical review to ensure that executive management controls risks by means of a properly
defined framework.
GLOBAL COMPACT
HPCL is also a member of the Global Compact Society of India which is the India Unit of the UN Global Compact, the largest
voluntary corporate initiative in the world. If offers a unique platform to engage companies in responsible business behaviour
through the principles of Human Right, Labour Standards Environment norms and Ethical practices. In HPCL, all these areas
receive constant attention of the management to ensure continuous compliance.
OUTLOOK
The economic growth is expected to improve in the year 2014-15. While structural impediments to growth are being addressed,
the impact will be gradual. Reduction in CAD and fiscal deficit has reduced the risk of stress in the Indian economy. External
demand is expected to improve as global economic prospects have brightened and are expected to improve further during
2014-15. The growth in the world economy is likely to be led by the advanced economies, especially the US. Emerging markets,
however, are facing slower medium term growth prospects. In this environment, the GDP growth in the country is expected to
be in the range of 5.4% to 5.9% during 2014-15. Downside risks emanate from scanty monsoon and its impact on agriculture
growth. CPI inflation in recent past has tended to be high due to high and volatile food prices. Any adverse outcome on monsoon
will, therefore, increase inflationary pressures and reduce monetary policy options to revive growth.
Slower growth prospects in emerging markets and Europe could also drag recovery by impacting exports. Oil prices have
averaged more than US$ 100 per barrel for last three years. Rising US oil supply and slowing emerging market growth suggest
slightly declining to flat oil prices this year. However, loss of supply due to turmoil in the Middle East and North Africa could lead
61
62
63
64
GSPL India Gasnet Ltd (GIGL) and GSPL India Transco Ltd (GITL)
GSPL India Gasnet Limited (GIGL) and GSPL India Transco Limited (GITL) were incorporated on 13th October 2011
as subsidiaries of Gujarat State Petronet Limited (GSPL). The authorised share capitals of GIGL and GITL as on 31st
March, 2014 were ` 2,000 crore and ` 2,200 crore respectively.
Pursuant to signing Joint Venture Agreements on 30th April 2012 with Gujarat State Petronet Limited (GSPL), IOCL and
BPCL (Equity holding: GSPL- 52%; IOCL- 26%; HPCL 11% and BPCL 11%), HPCL has become an equity partner
in GIGL and GITL. As on 31st March 2014, paid up capitals of GIGL and GITL were ` 137.01 crore and ` 115 crore
respectively.
GIGL will lay two cross-country gas pipelines viz 1,640 KM Mehsana to Bathinda Pipeline (with initial capacity of 43
million standard cubic meter per day i.e. MMSCMD to final capacity of 77 MMSCMD) and 740 KM Bathinda to Srinagar
Pipeline (with initial capacity of 32 MMSCMD to final capacity of 43 MMSCMD). GITL will lay 1,746 KM pipeline from
Mallavaram to Bhilwara (with initial capacity of 53 MMSCMD to final capacity of 77 MMSCMD).
The above JV Companies will facilitate HPCL to source gas and market it independently to customers along the pipeline
route.
65
The Financial Appraisal has been completed and debt syndication process is in progress. HSEL has initiated various
pre-construction activities. The scope of work and deliverable for front-end engineering design has been finalized.
On Environment front, Expert Appraisal Committee (EAC) has issued Terms of Reference for Environment Impact and
Risk Assessment Study (EIRA) on 01/03/14. HSEL has appointed National Environment Engineering Research Institute
(NEERI) and National Institute of Oceanography to carry out concerned environment studies.
z
66
Auditors Report
TO THE MEMBERS OF HINDUSTAN PETROLEUM CORPORATION LIMITED
Report on the Financial Statements
1.
We have audited the accompanying Financial Statements of HINDUSTAN PETROLEUM CORPORATION LIMITED
(the Company), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory
information, in which, is incorporated financial statements of Visakh Refinery, audited by the branch auditor, whose report
has been considered in preparing this report.
The Companys Management is responsible for the preparation of these financial statements that give a true and fair view of
the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards
notified under the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated September 13, 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the Companies Act 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors responsibility
3.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
4.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Companys preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion
on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
6.
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give
the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;
(b) in the case of Statement of Profit and Loss, of the profit for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Emphasis of Matter
7.
67
(b) Note No. 35 of Financial Statements regarding recognition of unrealized marked to market loss of ` 168.33 Crores
on forward contract taken to hedge the commitment to return USD to Reserve Bank of India. However the marked to
market gain on the said underlying commitment of ` 192.73 Crores is not recognized for reasons stated in the said note.
8.
As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report)
(Amendment) Order, 2004, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act
(the Order), and on the basis of such checks of the books and records of the Company as we considered appropriate and
according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
9.
We have obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purpose of our audit;
b.
In our opinion proper books of account as required by law have been kept by the Company so far as appears from
our examination of those books and proper returns adequate for the purposes of our audit have been received from
branches not visited by us;
bb. The report on the accounts of the Visakh Refinery audited by the auditor appointed by the Company has been forwarded
to us as required by clause (c) of sub-section (3) of Section 228 and have been dealt with in preparing our report in the
manner considered necessary by us;
c.
The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement
with the books of account;
d.
In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting
Standards notified under the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
e.
Disclosure in terms of clause (g) of Sub-Section (1) of Section 274 of the Companies Act, 1956 is not required for
Government Companies as per Notification No. GSR 829(E) dated October 21, 2003 issued by the Department of
Company Affairs.
A. K. Pradhan
Partner
Membership No. 032156
Firm No. 101745W
68
a)
The Company has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets except in respect of items like pipes, valves, meters, instruments and other similar items peculiar to a
continuous process industry.
b)
As per the information and explanation given to us, the Company has physically verified its fixed assets during the
previous year, other than LPG cylinders with customers, in accordance with the phased programme. The existence of
fixed assets situated at the residence of employee has, however, been ascertained on a self-declaration basis. In our
opinion, the frequency of verification is reasonable having regard to the size of the Company and the nature of its asset.
We were informed that discrepancies noticed on such verification were not material as compared to the book records
and have been properly dealt with in the books of account.
c)
In our opinion and according to the information and explanations given to us, fixed assets disposed off during the year
were not substantial and, therefore, do not affect the going concern assumption.
(ii) a)
As explained to us, the inventories were physically verified during the year by Management at reasonable intervals. In
case of materials lying with third parties, certificates confirming stocks held have been received from them.
b)
In our opinion and according to the information and explanations given to us, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in relation to the size of the Company and the
nature of its business.
c)
In our opinion and according to the information and explanations given to us and on the basis of our examination of
the inventory records, the Company has maintained proper records of its inventories. The discrepancies noticed on
physical verification, as compared to the book records, were not material and have been properly dealt with in the
books of account..
(iii) Based on the audit procedures applied by us and according to the information and explanations given to us and on the
basis of our examination of the records, the Company has neither granted or nor taken loans, secured or unsecured to /
from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.
Consequently, sub-clause (b),(c), (d), (e), (f)and (g)of sub-para (iii) of para 4 of the Order are not applicable.
(iv) In our opinion and according to the information and explanations given to us, and having regard to the explanation that
some of the items are of a specialized nature, in respect of which suitable alternative sources do not exist for obtaining
comparative quotations, there are adequate internal control procedure commensurate with the size of the Company and the
nature of its business, for the purchase of inventories and fixed assets and for the sale of goods and services. Further, on the
basis of our examination of the books and records of the Company, and according to the information and explanation given
to us, we have neither come across, nor have been informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) In our opinion and according to the information and explanation given to us, there are no contracts and arrangements
referred in section 301 of the Companies Act,1956 entered during the year that need to be entered in the Register maintained
under that section. Accordingly, sub-clause (b) of sub-para (v) of Para 4 of the Order is not applicable to the Company for
the current year.
(vi) The Company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the Act and
the rules framed thereunder.
(vii) In our opinion, the Company has an adequate internal audit system commensurate with its size and the nature of its
business.
(viii) We have broadly reviewed the cost records maintained by the Company in respect of the products, pursuant to the rules
made by the Central Government, the maintenance of cost records has been prescribed under section 209(1)(d) of the
Companies Act, 1956. We are of the opinion that prima facie the prescribed accounts and records have been maintained.
69
We have not, however, made a detailed examination of these records with a view to determine whether they are accurate or
complete.
(ix) a)
According to the information and explanations given to us and on the basis of our examination of the books of account,
the Company, during the year, has been generally regular in depositing with appropriate authorities, undisputed
statutory dues, including Provident fund, Investor Education and Protection Fund, Income tax, Sales tax, Wealth tax,
Service tax, Custom duty, Excise duty, Cess and any other material statutory dues, as applicable, with the appropriate
authorities.
b)
According to the information and explanations given to us and the records of the Company examined by us there are
no undisputed dues in respect of Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess, as
at March 31, 2014, which were in arrears for a period of more than six months from the date they became payable.
c)
According to information and explanation given to us and the records of the Company examined by us, the dues relation
to Sales tax, Income Tax, Customs duty, Wealth tax, Service tax, Excise duty, Cess, which have not been deposited on
account of disputes with the relevant authorities, are as under:
Statute
Forum Pending
Customs
Service Tax
Sales Tax
Income Tax
Revision Authority
Supreme Court
Total A
Central Excise Service Tax Appellate
Tribunal
Supreme Court
Total - B
Commissioner of Central Excise
Appeal
Central Excise Service Tax Appellate
Tribunal
Total C
Board of Revenue
Sales Tax Appellate Tribunal
Various High Court
Supreme Court
Commissioner/Deputy
Commissioner Commercial Tax/
Asst. Deputy Commissioner/ Joint
Commissioner Commercial Tax/
Asst. Commissioner Commercial Tax
Total D
Income Tax Appellate Tribunal
Total E
Grand Total (A+B+C+D+E)
Amount
Period to which amount relates
` in crores
146.77 Various years pertaining to 1994 to 2013
9.99 Various years pertaining to 1994 to 2013
12,187.81
33.25 Various years 2006 to 2011
33.25
12,616.91
70
(x)
The Company has no accumulated losses as at the end of the financial year and has not incurred cash losses in the
financial year ended on that date or in the immediately preceding financial year.
(xi)
According to the information and explanations given to us and the records of the Company examined by us,the Company
has not defaulted in repayment of dues to any financial institution or bank or debenture holders.
(xii)
According to the information and explanations given to us, the Company has not granted loans and advances on the basis
of security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion and according to the information and explanations given to us, the Company is not a chit fund and or a nidhi/
mutual benefit fund/ society.Accordingly, the provisions of sub-para (xiii) of para 4 of the Order are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanation given to us, the Company is not dealing or trading in
shares, securities, debentures and other investments. Accordingly, the provisions of sub-para (xiv) of para 4 of the Order
are not applicable to the Company.
(xv)
In our opinion and according to the information and explanations given to us, the Company has not given guarantees for
loans taken by others from banks and financial institutions during the year. Accordingly, the provisions of sub-para (xv) of
para 4 of the Order are not applicable to the Company.
(xvi) In our opinion and according to the information and explanations given to us, the term loans taken during the year, prima
facie, have been applied for the purpose for which they were raised. Accordingly, the provisions of sub-para (xvi) of para
4 of the Order are not applicable to the Company.
(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet,funds raised
on short-term basis have, prima facie, not been used for making long-term investments.
(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act 1956. Accordingly, the provisions of sub-para (xviii) of para 4 of the
Order are not applicable to the Company.
(xix) The Company has created securities / charge as per the debenture trust deed in respect of debentures issued and
outstanding at the year end.
(xx)
The Company has not raised any money through a public issue during the financial year.
(xxi) During the course of our examination of the books and records of the Company, carried out in accordance with the
generally accepted auditing practices in India, and according to the information and explanations given to us, we neither
came across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been
informed of any such case by the Management.
For B. K. Khare & Co.
Chartered Accountants
A. K. Pradhan
Partner
Membership No. 032156
Firm No. 101745W
71
2012 - 13
3
4
339.01
14,673.15
15,012.16
339.01
13,387.39
13,726.40
5
6
7A
7B
15,554.88
3,908.43
7,207.70
587.66
27,258.67
8,947.18
3,598.35
6,211.19
498.96
19,255.68
8
9
10A
10B
16,375.17
10,651.39
6,538.72
1,741.98
23,510.54
11,071.98
6,879.59
1,800.54
35,307.26
77,578.09
43,262.65
76,244.73
25,797.19
115.05
4,585.56
5,735.83
1,461.42
146.26
22,441.67
107.03
5,172.87
8,266.07
1,937.70
88.75
37,841.31
38,014.09
5,124.04
18,775.41
5,465.95
34.71
10,007.90
328.77
39,736.78
77,578.09
2,360.86
16,438.70
4,935.04
147.13
14,082.91
266.00
38,230.64
76,244.73
Notes
I. EQUITY AND LIABILITIES
(1) Shareholders Funds
(a) Share Capital
(b) Reserves and Surplus
TOTAL
II. ASSETS
(1) Non - Current Assets
(a) Fixed Assets
(i) Tangible Assets
(ii) Intangible Assets
(iii) Capital Work - in - Progress
(b) Non - Current Investments
(c) Long - Term Loans and Advances
(d) Other Non - Current Assets
11
12
13
14
15
16
17
18
19
20
21
22
TOTAL
Significant Accounting Policies
1&2
Significant Accounting Policies and Notes Forming Part of Accounts are an integral part of the Financial Statetments
FOR AND ON BEHALF OF THE BOARD
NISHI VASUDEVA
Chairman & Managing Director
K V Rao
Director-Finance
SHRIKANT M. BHOSEKAR
Company Secretary
A K PRADHAN
Partner
Membership No. 032156
72
Statement of Profit and Loss for the year ending 31st March, 2014
Notes
` / Crores
2013 - 14
2012 - 13
Revenue from Operations
a. Gross Sale of Products
23A
232,188.35
215,666.45
9,151.68
9,146.15
Less : Excise Duty
b. Net Sale of Products
223,036.67
206,520.30
c. Other Operating Revenues
23B
234.66
201.92
974.45
1,102.36
d. Other Income
23C
Total Revenue (b+c+d)
224,245.78
207,824.58
Expenses:
Cost of Materials Consumed
61,962.49
63,182.61
Purchases of Stock-in-Trade
145,137.95
128,163.94
Packages Consumed
213.20
183.12
Excise Duty on Inventory Differential
26.56
(227.54)
Transhipping Expenses
4,639.31
3,785.43
Changes in Inventories of Finished Goods Work-in-Progress and Stock-in-Trade
24
(574.43)
809.45
Employee Benefits Expense
25
2,030.30
2,525.56
Exploration Expenses
203.97
54.81
Finance Costs
26
1,336.36
1,412.80
Depreciation and Amortization Expense
11 & 12
2,201.94
1,983.52
Other Expenses
27
4,394.25
4,589.71
221,571.90
206,463.41
Total Expenses
Profit Before Prior Period, Exceptional and Extraordinary Items and Tax
2,673.88
1,361.17
58.37
(113.39)
Prior Period Expenses / (Incomes)
28
Profit Before Tax
2,615.51
1,474.56
Tax Expense: (refer note # 39)
Current tax
744.17
250.58
MAT Credit Entitlements
(61.06)
Deferred tax
117.75
440.95
Provision for Tax for Earlier years written back (net)
19.82
(60.62)
881.74
569.85
Total Tax Expenses
1,733.77
904.71
Profit / (Loss) after Tax for the Period
Earnings per equity share: (Basic and Diluted)
51.20
26.72
(2013 - 14 : EPS = Net Profit ` 1,733.77 Crores / Weighted Avg. no of shares - 33.863 Crores)
(2012 - 13 : EPS = Net Profit ` 904.71 Crores / Weighted Avg. no of shares - 33.863 Crores)
Significant Accounting Policies
1&2
Significant Accounting Policies and Notes Forming Part of Accounts are an integral part of the Financial Statetments
FOR AND ON BEHALF OF THE BOARD
NISHI VASUDEVA
Chairman & Managing Director
K V Rao
Director-Finance
SHRIKANT M. BHOSEKAR
Company Secretary
A K PRADHAN
Partner
Membership No. 032156
73
Cash Flow Statement For The Year Ended 31st March, 2014
` / Crores
A.
2013 - 14
2012 - 13
2,615.50
1,474.56
(13.50)
(49.10)
2,201.94
1,983.52
Depreciation / Amortisation
17.54
12.39
(9.47)
2.00
(0.16)
(0.14)
0.18
0.58
736.83
(181.79)
35.53
Finance Costs
1,336.36
1,412.80
(422.42)
(79.54)
13.09
47.67
(416.59)
(449.06)
(0.56)
(0.61)
(74.02)
(112.19)
5,984.72
4,096.62
(544.00)
(1,417.57)
3,842.85
(4,091.33)
(2,336.90)
3,015.24
1,150.19
(600.24)
2,112.14
(3,093.90)
8,096.86
1,002.72
366.78
107.17
7,730.08
895.55
(4,135.77)
(3,680.71)
28.47
13.90
(88.14)
(924.24)
Investment in Subsidiary
(70.00)
(2.50)
Inventories
Liabilites and Other Payables
74
(B)
672.47
416.59
454.37
74.02
96.14
(3,774.83)
(3,370.57)
Cash Flow Statement For The Year Ended 31st March, 2014
` / Crores
C. Cash Flow From Financing Activities
Long term Loans raised/(repaid)
Short term Loans raised / (repaid)
Finance Cost paid
Dividend paid (including dividend distribution tax)
Net Cash Flow generated from / (used in) Financing Activities (C)
Net Increase / (Decrease) in Cash and Cash Equivalents (A + B + C)
Opening Balance of Cash and Cash Equivalents
i. Cash and Cash Equivalents
Cash on hand
Cheques Awaiting Deposit
With Scheduled Banks:
- On Current Accounts
- On Non-operative Current Accounts
- On Fixed Deposit Accounts
ii. Earmarked for Unclaimed dividend
iii. Current Account with Municipal Co-operative Bank Ltd.
Overdraft from Bank
Closing Balance of Cash and Cash Equivalents
i. Cash and Cash Equivalents
Cash on hand
Cheques Awaiting Deposit
With Scheduled Banks:
- On Current Accounts
- On Non-operative Current Accounts
- On Fixed Deposit Accounts
ii. Earmarked for Unclaimed dividend
iii. Current Account with Municipal Co-operative Bank Ltd.
Overdraft from Bank
Net Increase / (Decrease) in Cash and Cash Equivalents
2013 - 14
2012 - 13
4,979.10
(7,543.92)
(1,704.47)
(336.67)
(4,605.97)
(650.72)
1,342.88
2,364.28
(1,964.15)
(334.43)
1,408.58
(1,066.44)
11.58
0.25
128.60
0.01
4.16
2.46
0.06
147.13
(1,379.27)
(1,232.14)
9.24
1.23
209.66
0.01
3.82
2.36
0.06
226.38
(392.06)
(165.68)
12.58
0.15
11.58
0.25
14.92
0.01
4.52
2.53
0.00
34.71
(1,917.57)
(1,882.86)
128.60
0.01
4.16
2.46
0.06
147.13
(1,379.27)
(1,232.14)
(650.72)
(1,066.44)
SHRIKANT M. BHOSEKAR
Company Secretary
A K PRADHAN
Partner
Membership No. 032156
75
Notes to the Financial Statements for the Year ending 31st March, 2014
SIGNIFICANT ACCOUNTING POLICIES
1.
BASIS OF PREPARATION
The financial statements are prepared under historical cost convention in accordance with Generally Accepted Accounting
Principles (GAAP), Accounting Standards referred to in the Companies (Accounting Standards) Rules, 2006 issued by
the Central Government and the relevant provisions of the Companies Act, 1956 read with the General circular 15/2013
dated 13 September 2013 of the Ministry of Corporate Affairs in respect of the Companies Act, 2013. All income and
expenditure having material bearing are recognised on accrual basis, except where otherwise stated. Necessary estimates
and assumptions of income and expenditure are made during the reporting period and difference between the actual and
the estimates are recognised in the period in which the results materialise.
2.
2.1
TANGIBLE ASSETS
2.2
2.3
2.4
2.5
a.
b.
c.
Technical know-how /licence fee relating to plants/ facilities are capitalized as part of cost of the underlying asset.
INTANGIBLE ASSETS
a.
Cost of Right of Way for laying pipelines is capitalised as Intangible Asset and is amortised over a period of 99 years.
b.
Technical know-how /licence fee relating to production process and process design are recognized as Intangible
Assets.
c.
Cost of Software directly identified with hardware is capitalised along with the cost of hardware. Application software
is capitalised as Intangible Asset.
Related expenditure (including temporary facilities and crop compensation expenses) incurred during construction
period in respect of plan projects and major non-plan projects are capitalised.
b.
Financing cost incurred during the construction period on loans specifically borrowed and utilised for projects is
capitalised. Financing cost includes exchange rate variationto the extent regarded as an adjustment to interest cost.
c.
Financing cost, if any, incurred on general borrowings used for projects during the construction period is capitalised
at the weighted average cost.
DEPRECIATION / AMORTIZATION
a.
Depreciation on Fixed Assets is provided on the Straight Line method, in the manner and at the rates prescribed
under Schedule XIV to the Companies Act, 1956 and is charged pro rata on a monthly basis on assets, from / up to
and inclusive of the month of capitalisation / sale, disposal or deletion during the year.
b.
All assets costing up to ` 5000/-, other than LPG cylinders and pressure regulators, are fully depreciated in the year
of capitalisation.
c.
d.
Machinery Spares, which can be used only in connection with an item of fixed asset and the use of which is expected
to be irregular, are depreciated over a period not exceeding the useful life of the principal item of fixed asset.
e.
Intangible Assets other than application software and cost of right of way are amortized on a straight line basis over
a period of ten years or life of the underlying plant/facility, whichever is earlier.
f.
Application software are normally amortised over a period of four years, or over its useful life, whichever is earlier.
IMPAIRMENT OF ASSETS
At each balance sheet date, an assessment is made of whether there is any indication of impairment. An impairment loss
is recognised whenever the carrying amount of assets of cash generating units(CGU) exceeds their recoverable amount.
2.6
Foreign Currency transactions during the year are recorded at the exchange rates prevailing on the date of
transactions.
b.
All foreign currency assets, liabilities and forward contracts are restated at the rates prevailing at the year end.
76
Notes to the Financial Statements for the Year ending 31st March, 2014
c.
All exchange differences are dealt with in the Statement of Profit and Loss including those covered by forward
contracts, where the premium / discount arising from such contracts are recognised over the period of contracts.
However, foreign exchange differences on long term foreign currency monetary items relating to acquisition of
depreciable assets are adjusted to the carrying cost of the assets and in other cases, if any, accumulated in Foreign
Currency Monetary Item Translation Difference Account and amortised over the balance period of loan.
d.
2.7
2.8
2.9
The realised gain or loss in respect of commodity hedging contracts, the pricing period of which has expired during
the year, are recognised in the Statement of Profit and Loss along with the underlying transaction. However, in
respect of contracts, the pricing period of which extends beyond the Balance Sheet date, suitable provision is made
for likely loss, if any.
INVESTMENTS
a.
Long-Term Investments are valued at cost and provision for diminution in value thereof is made, wherever such
diminution is other than temporary.
b.
Current Investments are valued at the lower of cost and fair value.
INVENTORIES
a.
Crude oil is valued at cost on First In First Out (FIFO) basis or at net realisable value, whichever is lower.
b.
Raw materials for lubricants and finished lubricants are valued at weighted average cost or at net realisable value,
whichever is lower.
c.
Stock-in process is valued at raw material cost plus cost of conversion or at net realisable value, whichever is lower.
d.
Finished products other than Lubricants are valued at cost (on FIFO basis month-wise) or at net realisable value,
whichever is lower.
e.
f.
Stores and spares are valued at weighted average cost. Stores and Spares in transit are valued at cost.
g.
Value of surplus, obsolete and slow moving stores and spares, if any, is reduced to net realisable value. Surplus
items, when transferred from completed projects are valued at cost / estimated value, pending periodic assessment /
ascertainment of condition.
2.10 GRANTS
a.
In case of depreciable assets, the cost of the asset is shown at gross value and grant thereon is treated as Capital
Grants, which is recognised in the Statement of Profit & Loss over the period and in the proportion in which
depreciation is charged.
b.
2.11 PROVISIONS
A provision is recognised when there is a present obligation as a result of a past event and it is probable that an outflow of
resources will be required to settle the obligation in respect of which a reliable estimate can be made.
2.12 EXPLORATION & PRODUCTION EXPENDITURE
Successful Efforts Method of accounting is followed for Oil & Gas exploration and production activities as stated below:
a.
Cost of surveys, studies, carrying and retaining undeveloped properties are expensed out in the year of incurrence.
b.
Cost of acquisition, drilling and development are treated as Capital Work-in-Progress when incurred and are
capitalised when the well is ready to commence commercial production.
c.
Accumulated costs on exploratory wells in progress are expensed out in the year in which they are determined to be
dry.
The proportionate share in the assets, liabilities, income and expenditure of joint operations are accounted as per the
participating interest in such joint operations.
77
Notes to the Financial Statements for the Year ending 31st March, 2014
2.13 EMPLOYEE BENEFITS
Liability towards long term defined employee benefits - leave encashment, gratuity, pension, post retirement medical
benefits, long service awards, ex-gratia, death benefits and resettlement allowance are determined on actuarial valuation
by independent actuaries at the year-end by using Projected Unit Credit method. Liability so determined is funded in the
case of leave encashment and gratuity, and provided for in other cases.
In respect of Provident Fund, the contribution for the period is recognized as expense and charged to Statement of Profit
& Loss.
Short term employee benefits are recognized as an expense at an undiscounted amount in the Statement of Profit & Loss
of the year in which the related services are rendered.
2.14 REVENUE RECOGNITION
a.
Sales are recorded based on significant risks and rewards of ownership being transferred in favour of the customer.
b.
Sales are net of discount, include applicable excise duty, surcharge and other elements as are allowed to be
recovered as part of the price but excludes VAT/sales tax.
c.
Claims, including subsidy on LPG, HSD and SKO, from Government of India are booked on in principle acceptance
thereof on the basis of available instructions / clarifications.
d.
Dividend income is recognised when the Companys right to receive the dividend is established.
e.
f.
Interest income is recognised on a time proportion basis taking into account the amount outstanding and the
applicable interest rate.
Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961.
b.
Deferred tax liability/asset on account of timing difference between taxable and accounting income is recognised
using tax rates and tax laws enacted or substantively enacted as at the Balance Sheet date. In the event of unabsorbed
depreciation or carry forward of losses, deferred tax assets are recognized, if there is virtual certainty that sufficient
future taxable income will be available to realize such assets.
c.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, is considered as an asset when it is probable that
the future economic benefits associated with it, will flow to the Corporation.
b.
A possible obligations that arise from past events but their existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the control of the Company or
ii.
A present obligation where it is not probable that an outflow of resources embodying economic benefit will be
required to settle the obligations or a reliable estimate of the amount of obligation cannot be made.
Contingent Liabilities are considered only for items exceeding ` 5 lakhs in each case. Contingent Liabilities in respect
of show cause notices are considered only when converted into demands. Capital Commitments are considered
only for items exceeding ` 1 lakh in each case.
b.
c.
d.
Income and expenditure of previous years, individually amounting to ` 5 lakhs and below are not considered as prior
period items.
78
Notes to the Financial Statements for the Year ending 31st March, 2014
` / Crores
2013 - 14
3.
SHARE CAPITAL
A.
Authorised:
75,000 Cumulative Redeemable Preference Shares of ` 100/- each
34,92,50,000 Equity Shares of `10/- each
B.
0.75
349.25
350.00
350.00
339.33
339.33
0.70
0.70
338.63
338.63
0.39
0.39
339.01
339.01
Details of shares held by each shareholder holding more than 5% shares in the Company
31.03.2014
Name of shareholder
31.03.2013
% Holding
No. of Shares
% Holding
No. of Shares
51.11
173,076,750
51.11
173,076,750
9.85
33,359,022
9.84
33,332,314
President of India
Life Insurance Corporation of India
(b)
0.75
349.25
(a)
2012 - 13
4.
2012 - 13
1,153.77
1,153.77
407.02
438.69
137.77
227.52
269.25
259.19
275.54
407.02
3.66
3.80
0.16
0.14
3.50
3.66
Capital Grant
79
Notes to the Financial Statements for the Year ending 31st March, 2014
` / Crores
2013 - 14
Foreign Currency Monetary Item Translation Difference Account
(Refer Note # 34)
As per last Balance Sheet
Additions during the year
Less: Amortised during the year
2012 - 13
(4.66)
175.69
9.47
161.56
(6.66)
(2.00)
(4.66)
1,635.70
1,504.51
40.72
General Reserve
As per last Balance Sheet
Add:Additions during the year*
Add:Transfer from The Statement of Profit and Loss
173.38
90.47
1,809.08
1,635.70
10,191.90
9,682.74
1,733.77
904.71
173.38
90.47
Surplus
As per last Balance Sheet
Add : Profit for the year
Less : Profit appropriated to General Reserve
Add : Transfer from Debenture Redemption Reserve
269.25
259.19
137.77
227.52
Less : Profit appropriated to Proposed Dividend (Dividend Per Share ` 15.50 (2012
- 13 ` 8.50 per share)
524.87
287.83
89.20
48.92
11,269.70
10,191.90
14,673.15
13,387.39
975.00
975.00
545.00
545.00
1,520.00
1,520.00
463.00
559.50
7,579.88
6,867.68
5,992.00
14,034.88
15,554.88
7,427.18
8,947.18
* Pertains to Exchange Difference for the year 2007-08 on Syndicated Loans from Foreign
Banks (repayable in foreign currency) and which has been adjusted to the carrying
costs of the related depreciable assets pursuant to clarification dated 9th August 2012
from the MCA.
5.
LONG-TERM BORROWINGS
Secured Loans
Unsecured Loans
Term Loan from Oil Industry Development Board (b)
Syndicated Loans from Foreign Banks (repayable in foreign
currency) (c)
Syndicated Working Capital Loans from Foreign Banks
(repayable in foreign currency) (c)
80
Notes to the Financial Statements for the Year ending 31st March, 2014
(a)
Debentures
The Company has issued the following Secured Redeemable Non-convertible Debentures:
(b)
i.
8.77% Non-Convertible Debentures were issued on 13th March, 2013 with the maturity date of 13th of March,
2018. These are secured by mortgage, on first pari passu charge basis, over certain fixed assets of the
Company.
ii.
8.75% Non-Convertible Debentures were issued on 9th November, 2012 with the maturity date of 9th of
November, 2015. These are secured by mortgage, on first pari passu charge basis, over certain fixed assets of
the Company.
Repayable
Amount
(` / Crores)
2013-14*
Range of Interest
Rate
330.75
7.10 % - 9.96%
7.10 % - 8.39%
2014-15*
234.50
7.10 % - 8.39%
234.50
2015-16
234.50
7.20 % - 9.27%
200.00
7.20% - 8.39%
2016-17
159.50
8.07 % - 9.27%
125.00
8.07% - 8.39%
2017-18
34.50
8.94 % - 9.27%
2018-19
34.50
8.94 % - 9.27%
Total
697.50
890.25
* ` 234.50 Crores (2012 - 13 : ` 330.75 Crores) is repayble within 1 year and the same has been shown as Current
Maturity of Long Term Debts under Note # 10 A.
(c)
6.
7A.
81
2013 - 14
2012 - 13
224.36
504.74
729.10
385.79
229.56
615.35
4,217.78
419.75
4,637.53
3,908.43
3,808.73
404.97
4,213.70
3,598.35
7,172.49
3.06
32.15
7,207.70
6,143.29
3.08
64.82
6,211.19
Notes to the Financial Statements for the Year ending 31st March, 2014
` / Crores
7B.
8.
LONG-TERM PROVISIONS
Provision for Long Term Employee Benefits (refer foot note to note 10B)
SHORT-TERM BORROWINGS
Loans repayble on demand from Banks
Secured Loans
Collateral Borrowing and Lending Obligation (CBLO) (Secured by
Pledge of 6.90 % Oil Marketing Companies GOI Special Bonds, 2026 of
` 2,750 Crores)
Overdrafts from Banks (Secured by hypothecation of Inventories)
Unsecured Loans
Short Term Loans from Banks (repayable in foreign currency)
Clean Loans from Banks
Commercial Papers
9.
TRADE PAYABLES
Micro, Small and Medium Enterprises (Refer Note # 40)*
Other Trade Payables
2013 - 14
2012 - 13
587.66
587.66
498.96
498.96
825.00
1,917.57
2,742.57
975.00
1,379.27
2,354.27
13,032.60
600.00
13,632.60
16,375.17
19,707.27
1,449.00
21,156.27
23,510.54
10,651.39
10,651.39
11,071.98
11,071.98
12.14
136.05
58.57
2.53
0.02
0.01
234.50
6,094.90
6,538.72
8.06
124.47
139.66
2.46
0.02
0.01
1,330.75
5,274.16
6,879.59
To the extent Micro and Small Enterprises have been identified, the outstanding balance, including interest thereon,
if any, as at Balance Sheet date is disclosed on which Auditors have relied upon.
**
No amount is due as at the end of the year for credit to Investors Education and Protection Fund.
***
This includes loans repayable withing one year: Non - Convertible Debenture ` Nil (2012 - 13: ` 1,000 Crores) and
Loan from Oil Industry and Development Board ` 234.50 Crores (2012 - 13: ` 330.75 Crores).
**** Includes Statutory Liabilities of ` 2,518.81 Crores (2012 - 13: ` 2,062.46 Crores), Liabilities towards Forward Exchange
Contracts of ` 386.40 Crores (2012 - 13: ` 653.96 Crores), Liabilities relating to retention money payable to Suppliers
within one year, Supplies / Project related payables, etc. ` 2,821.93 Crores (2012 - 13: ` 2,352.81 Crores)
82
Notes to the Financial Statements for the Year ending 31st March, 2014
` / Crores
2013 - 14
2012 - 13
845.26
282.49
524.87
0.16
89.20
1,741.98
1,463.63
287.83
0.16
48.92
1,800.54
* Represents provisions for gratuity, leave encashment, post retirement benefits etc. (refer note # 50)
11. TANGIBLE ASSETS
` / Crores
Sr.
No.
Description
1
2
3
4
5
6
7
8
9
Land -Freehold
Buildings
Plant & Equipment
Furniture & Fixtures
Transport Equipment
Office Equipment
Roads and Culverts
Leasehold Property - Land
Railway Siding & Rolling
Stock
10 Unallocated Capital
Expenditure on Land
Development
Grand Total
Previous Year 2012-13
As at
1st Apr,
2013
646.69
3,377.58
28,937.88
149.40
168.95
579.82
2,170.95
404.70
306.31
0.20
0.20
36,742.48
33,215.29
5,567.07
4,384.42
137.42
857.25
42,172.14
36,742.48
Depreciation / Amortisation
Net Block
As at
For the Deductions/
As at
As at
As at
1st Apr,
Year
Reclassifi- 31st Mar, 31st Mar, 31st Mar,
2013
cations
2014
2014
2013
722.91
646.69
394.23
62.20
0.51
455.92
3,305.36
2,983.35
13,041.20 1,958.57
71.75 14,928.02 18,474.75 15,896.69
67.88
8.13
1.00
75.01
91.37
81.52
102.05
13.96
3.14
112.87
60.70
66.90
221.53
48.18
14.96
254.75
376.79
358.29
196.06
38.98
0.05
234.99
2,223.27
1,974.90
79.01
12.52
91.53
321.48
325.69
23.00
221.66
220.56
107.66
198.66
0.20
0.20
14,300.82 2,165.53
12,479.75 1,905.26
91.41
84.19
16,374.95
14,300.82
25,797.19
22,441.67
22,441.67
20,735.56
Notes:
1 Includes assets costing ` 76,191/- (2012-2013: ` 76,191/-) of erstwhile Kosan Gas Company not handed over to the
Corporation. In case of these assets, Kosan Gas Company was to give up their claim. However, in view of the tenancy right
sought by third party, the matter is under litigation.
2 Includes ` 73.30 Crores (2012-2013: ` 73.34 Crores) being the Corporations Share of Cost of Land & Other Assets jointly
owned with other Oil Companies.
3 Includes ` 35.32 Crores (2012-2013 : ` 35.32 Crores) towards Roads & Culverts, Transformers & Transmission lines, Railway
Sidings & Rolling Stock, ownership of which does not vest with the Corporation. The Corporation is having operational
control over such assets. These assets are amortised at the rate of depreciation specified in Schedule XIV of the Companies
Act, 1956.
4 Includes following assets which are used for distribution of PDS Kerosene under Jana Kalyan Pariyojana against which
financial assistance is being provided by OIDB.
` / Crores
Description
Roads & Culverts
Buildings
Plant & Equipment
Total
Original Cost
(31.03.2014)
0.13
1.62
2.81
4.56
Original Cost
(31.03.2013)
0.14
1.64
2.82
4.60
83
Notes to the Financial Statements for the Year ending 31st March 2014
5
Includes Assets retired from active use and held for disposal - Gross Block: ` 22.38 Crores / Net Block: ` 3.61 Crores
(2012-13: Gross Block: ` 22.04 Crores / Net Block: ` 1.60 Crores). These Assets are valued at their Net Book Value or Net
Realisable Value whichever is lower: ` 2.25 Crores (2012-13: ` 1.02 Crores).
Depreciation for the year includes reversal of excess depreciation on building in earlier years of ` NIL (2012-13: ` 60.85 Crores)
on account of re-classification of various assets under Factory Building, Non-Factory Building and Fences, ` -0.14 (2012-13:
` 14.36 Crores) on Plant and Machinery on account of other adjustments and reversal of excess depreciation charged in
earlier years of NIL (2012-13: ` 3.94 Crores) on Leasehold Land. These have been disclosed under the head Depreciation
in note # 28 on Prior period expenses/ (income).
Leasehold Land includes ` 22.35 Crores (2012-13 ` 18.05 Crores) for land acquired on lease-cum-sale basis from Karnataka
Industrial Area Development Board (KIADB). Lease shall be converted into Sale on fulfillment of certain terms and conditions
as per allotment letter.
Description
Right of Way
Technical / Process Licenses
Software
Grand Total
Previous Year 2012-13
As at
1st Apr,
2013
1.77
27.80
127.11
156.69
129.60
Depreciation / Amortisation
Net Block
For the Deductions/
As at
As at
As at
Year
Reclassifi- 31st Mar, 31st Mar, 31st Mar,
cations
2014
2014
2013
0.47
2.24
50.23
43.52
9.23
37.03
45.68
35.19
13.20
0.01
140.30
19.14
28.32
22.90
0.01
179.57
115.05
107.03
29.17
2.08
156.69
107.03
114.09
Notes:
1
Cost of Right of Way is amortised over a period of 99 years which has resulted in amortization during the year of ` 0.47
Crores; prior period NIL (2012-13 : ` 1.77 Crores including ` 1.33 Crores pertaining to Prior Period).
` / Crores
13.
2013 - 14
2012 - 13
3,699.61
4,378.30
150.39
126.27
25.46
0.39
3,875.46
4,504.96
123.99
149.73
586.11
518.18
CAPITAL WORK-IN-PROGRESS
Unallocated Capital Expenditure and Materials at Site
Capital Stores lying with Contractors
Capital goods in transit
84
710.10
667.91
4,585.56
5,172.87
Notes to the Financial Statements for the Year ending 31st March, 2014
` / Crores
2013 - 14
14.
NON-CURRENT INVESTMENTS
Trade Investments
Quoted
Investments in Equity
Investments in Joint Venture
Mangalore Refinery and Petrochemicals Ltd.
29,71,53,518 Equity Shares of ` 10 each fully paid up
Investments in Others
Oil India Ltd.
1,33,75,275 Equity Shares of ` 10 each fully paid up
Scooters India Ltd.
10,000 Equity Shares of ` 10 each fully paid up
Investment in Government Securities
6.90% Oil Marketing Companies GOI Special Bonds 2026*
Unquoted
Investment in Equity
Investments in Subsidiaries
CREDA HPCL Biofuel Ltd.
1,60,99,803 (2012 - 13 : 78,26,923) Equity Shares of ` 10 each fully paid
HPCL - Biofuels Ltd.
20,55,20,000 Equity Shares of ` 10 each fully paid up
Prize Petroleum Co. Ltd
11,99,99,600 (2012 - 13 : 6,99,99,600) Equity Shares of ` 10 each fully paid
up (2012 - 13 : ` 0.50 called up on 5,00,00,000 shares)
HPCL Rajasthan Refinery Ltd
37,000 Equity Shares of ` 10 each fully paid-up
Investments in Joint Venture
HPCL-Mittal Energy Ltd.
3,69,07,35,200 (2012 - 13 : 3,21,85,55,200) Equity Shares of ` 10 each fully
paid up
Hindustan Colas Ltd.
47,25,000 Equity Shares of ` 10 each fully paid-up
Petronet India Ltd.
1,59,99,999 Equity Shares of ` 10 each fully paid up
Less : Provision for Diminution
Petronet MHB Ltd.
15,78,41,000 Equity Shares of ` 10 each fully paid up
South Asia LPG Co. Pvt. Ltd.
5,00,00,000 Equity Shares of ` 10 each fully paid up
Bhagyanagar Gas Ltd.
12,497 Equity Shares of ` 10 each fully paid up
Aavantika Gas Ltd
12,498 Equity Shares of ` 10 each fully paid up
GSPL India Transco Ltd
1,26,50,000 (2012 - 13 : 42,41,359) Equity Shares of ` 10 each fully paid up
GSPL India Gasnet Ltd
1,50,72,128 (2012 - 13 : 63,56,743) Equity Shares of ` 10 each fully paid up
85
2012 - 13
471.68
471.68
561.76
561.76
0.01
0.01
3,500.00
16.10
7.83
205.52
205.52
120.00
72.50
0.04
3,690.74
3,218.56
4.73
4.73
16.00
16.00
16.00
157.84
16.00
157.84
50.00
50.00
0.01
0.01
0.01
0.01
12.65
4.24
15.07
6.36
Notes to the Financial Statements for the Year ending 31st March, 2014
` / Crores
2013 - 14
5.00
2012 - 13
-
419.65
5.00
5.00
5,735.81
8,266.05
0.02
0.00
0.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.02
5,735.83
0.00
0.02
8,266.07
*:
* Includes ` 0.14 lakhs (2012-13 : ` 0.14 lakhs) not in the possession of the Company
` / Crores
Disclosure towards Cost / Market Value
a Aggregate amount of Quoted Investments
b Aggregate amount of Unquoted Investments
2013 - 14
Market Value
2,064.87
Cost
1,033.45
4,702.38
5,735.83
86
2012 - 13
Market Value
5,294.97
Cost
4,533.45
3,732.62
8,266.07
Notes to the Financial Statements for the Year ending 31st March 2014
` / Crores
2013 - 14
15.
16.
231.04
173.88
238.47
168.98
170.30
568.44
1.88
70.11
6.31
4.98
62.30
12.00
160.18
1,461.42
26.35
406.85
1.45
64.86
7.23
83.97
4.97
454.27
12.00
162.84
305.46
1,937.70
146.26
88.75
146.26
88.75
*Includes Working Capital Loans to customers ` 45.04 Crores (2012 - 2013 : ` 52.65
Crores) and Statutory Receivables of ` 109.02 Crores (2012 - 2013 : ` 109.02 Crores)
OTHER NON - CURRENT ASSETS
Unamortized Expenses (including ancillary cost, refer note # 37)
17.
2012 - 13
CURRENT INVESTMENTS
TRADE INVESTMENTS (Quoted)
i.
ii. 6.90% Oil Marketing Companies GOI Special Bonds, 2026 (refer note # 38)*
5.07
5.10
2,938.79
23.64
22.26
24.02
115.25
123.49
2,042.67
2,184.61
5,124.04
2,360.86
` / Crores
2013 - 14
Disclosure towards Cost / Market Value
Aggregate of Quoted Investments
Market Value
5,124.03
2012 - 13
Cost
6,211.71
1087.68
Market Value
2,360.86
Cost
2,711.71
350.85
* ` 2,750 Crores bonds pledged with Clearing Corporation of India Limited against CBLO Loan. Also refer note # 38
87
Notes to the Financial Statements for the Year ending 31st March, 2014
` / Crores
2013 - 14
18.
2012 - 13
INVENTORIES
(As per Inventory taken, valued and certified by the Management)
Raw Materials (Including in transit ` 1,563.45 Crores: 2012 - 13 : ` 831.91 Crores)
4,625.48
2,896.39
Work - in - Progress
1,491.69
1,208.43
Finished Goods
7,381.12
7,414.37
4,959.04
4,634.64
306.43
271.87
11.64
13.00
18,775.41
16,438.70
Stores and Spares (Including in transit ` 41.51 Crores: 2012 - 13 : ` 10.50 Crores)
Packages
19.
TRADE RECEIVABLES
Over six months (from the due date) :
Unsecured Considered good
35.38
23.02
Considered Doubtful
134.15
121.06
134.15
121.06
35.38
23.02
5,430.57
4,912.02
5,430.57
4,912.02
5,465.95
4,935.04
12.58
11.58
0.15
0.25
14.92
128.61
0.01
0.01
4.52
4.16
Others :
Unsecured Considered good
20.
ii.
2.53
2.46
iii.
0.00
0.06
34.71
147.13
88
Notes to the Financial Statements for the Year ending 31st March, 2014
` / Crores
2013 - 14
21.
2012 - 13
113.21
111.87
11.10
4.74
58.98
11.40
392.67
378.52
1.85
3.30
25.89
26.24
7,084.92
12,663.93
75.00
155.00
2,244.28
727.91
10,007.90
14,082.91
3.97
3.97
3.97
3.97
10,007.90
14,082.91
82.82
82.82
78.02
30.12
234.65
219.78
66.72
66.72
328.77
266.00
216,337.21
190,039.81
Total A
Unsecured, considered doubtful :
Total B
Total (A+B)
* Includes : ` 637.19 Crores (2012 - 13 ` 535.87 Crores) deposits made with LIC for
liability towards Leave Encashment, ` 1,411.75 crores (2012 - 13 ` Nil) recoverable from
Government of India towards Direct Benefit Transfer for LPG consumers (DBTL)
22.
15,851.14
25,626.64
232,188.35
215,666.45
99.19
91.00
1.27
2.83
89
134.20
108.09
234.66
201.92
Notes to the Financial Statements for the Year ending 31st March, 2014
` / Crores
2013 - 14
23C. OTHER INCOME
Interest On :
Deposits
Staff Loans
Customers Accounts
Long Term Investments (refer note # 38)
Current Investments
Others
Dividend income*
Share of Profit from Petroleum India International (AOP)
Miscellaneous Income
24.
25.
26.
FINANCE COSTS
(a) Interest Expense*
(b) Other Borrowing Costs
(c) Applicable Net (Gain)/Loss on Foreign Currency Transactions and Translation
2012 - 13
0.56
23.66
109.84
416.59
139.47
690.12
0.46
19.02
137.30
241.50
207.56
143.05
748.89
74.02
0.57
209.74
974.45
112.19
0.61
240.67
1,102.36
1,491.69
7,381.12
4,959.05
13,831.86
1,208.43
7,414.36
4,634.64
13,257.43
1,208.43
7,414.36
4,634.64
13,257.43
(574.43)
1,635.58
6,890.54
5,540.76
14,066.88
809.45
1,533.00
117.03
144.53
235.74
2,030.30
1,675.72
134.50
457.81
257.53
2,525.56
613.53
28.92
693.91
1,336.36
1,219.75
12.96
180.09
1,412.80
* Includes interest u/s 234 B/ 234C of Income Tax Act, 1961 for an amount ` 25.06 Crores (2012 - 13 : ` 6.18 Crores)
90
Notes to the Financial Statements for the Year ending 31st March, 2014
` / Crores
2013 - 14
27.
OTHER EXPENSES
Consumption of Stores, Spares and Chemicals
Power and Fuel
Less : Fuel of own production consumed
Repairs and Maintenance - Buildings
Repairs and Maintenance - Plant and Machinery
Repairs and Maintenance - Other Assets
Insurance
Rates and Taxes
Irrecoverable Taxes and Other Levies
Equipment Hire Charges
Rent
Travelling and Conveyance
Printing and Stationery
Electricity and Water
Charities and Donations
Stores and Spares written off
Loss on Sale of Current Investments
Provision / (Reversal) for Diminution in value of Current Investments (refer note # 38)
Provision for Doubtful Receivables
(After adjusting provision no longer required)
Provision for Doubtful Debts
After adjusting provision no longer required written back ` 0.99 Crores, 2012-13 :
` 27.80 crores)
Loss on Sale/ write off of Fixed Assets/ CWIP (Net)
Security Charges
Advertisement and Publicity
Sundry Expenses and Charges (Not otherwise classified)
Consultancy and Technical Services
Exchange Rate Variations (Net)
28.
2012 - 13
167.81
2,136.51
2,027.01
109.50
36.43
650.68
193.58
36.66
161.41
427.14
1.97
206.74
182.45
15.70
532.74
23.74
0.18
736.83
-
156.39
2,063.08
1,428.39
634.69
36.78
618.17
157.98
34.97
116.85
184.89
5.41
178.83
156.86
14.28
458.86
21.78
0.58
35.53
(181.79)
(0.02)
13.09
47.69
17.54
111.37
130.30
386.16
36.94
215.29
4,394.25
12.39
95.82
91.91
382.07
42.84
1,285.95
4,589.71
5.02
(6.49)
91
7.93
(13.50)
(49.10)
(64.82)
65.16
0.53
0.25
58.37
(113.39)
Notes to the Financial Statements for the Year ending 31st March, 2014
29.
During the current financial year 2013-14, ONGC and GAIL offered discount on prices of crude, PDS SKO and Domestic
LPG purchased from them. Accordingly, the Corporation has accounted the discount as under:
(a)
` 1,815.55 Crores (2012-13: ` 1,587.82 Crores) discount received on purchase of PDS SKO and Domestic LPG from
ONGC and GAIL has been adjusted against Purchases of Stock-in-Trade.
(b)
` 14,955.22 Crores (2012-13: ` 9,600.71 Crores) discount received on Crude Oil purchased from ONGC has been
adjusted against purchase cost of Crude Oil.
30.
In principle approval of Government of India for Budgetary Support amounting to ` 15,215.45 Crores (2012-13: ` 24,825.28
Crores), has been received and the same have been accounted under Recovery under Subsidy Schemes.
31.
(a)
Inter-Oil company transactions are reconciled on a continuous basis. However, year end balances are subject to
confirmation/reconciliation.
(b)
Customers accounts are reconciled on an ongoing basis and such reconciliation is not likely to have a material
impact on the outstanding or classification of the accounts.
32.
The Corporation has, as at the Balance Sheet date, entered into foreign exchange hedging contracts amounting to USD
138.85 Crores (2012-13 : USD 246.90 Crores) to hedge its foreign currency exposure towards loans/ export earnings.
The Corporation normally does not hedge the foreign currency exposure in respect of payment for crude/product which
is due for payment generally within 30 to 90 days. Exposures not hedged as of Balance Sheet date amounted to USD
106.27 Crores (2012-13: USD 103.70 Crores) towards purchase of Crude & Products and USD 305.15 Crores (2012-13:
USD 242.60 Crores) in respect of loans taken. As at Balance Sheet date, Corporation has interest rate swap contracts for a
value of USD 20 Crores (2012-13: USD 16 Crores) to cover its floating interest rate exposure to fixed interest rate. Forward
contract of USD 95.30 Crores are outstanding as at the year end to hedge the RBI swap transactions referred in note # 35
later.
33.
In accordance with the option as per AS 11 (notified under the Companys Accounting Standards Rules, 2006) exercised
in the year 2008 09, the Corporation has adjusted the exchange differences arising on long term foreign currency
monetary items to the cost of assets and depreciated over the balance life of the assets. The Corporation has continued to
exercise the option during the year 2013-14 as per Ministry of Corporate Affairs Notification.
34.
In accordance with the option exercised by the Company as referred in note # 33, an amount (gain) of ` 161.58 Crores
(2012 - 13: loss of ` 4.66 Crores) related to non-depreciable assets is remaining to be amortized over the balance period
of loan in Foreign Currency Monetary Item Translation Difference Account as at March 31, 2014.
35.
During the financial year 2013-14, Reserve Bank of India had introduced forex swap window for meeting the daily US dollar
requirement of public sector oil marketing companies. The net realized gain (including premium paid/ received) of ` 147.74
Crores on the RBI Swap transactions and the forward contracts taken to hedge the same, which have matured during the
financial year 2013-14 have been recognized and accounted for in the books.
The un-matured RBI Swap Transactions (which are in the nature of firm commitments) are mark to market at the year end
and resultant unrealized gain of ` 192.73 Crores is not recognized on ground of prudence. The forward contracts taken
to hedge the un-matured RBI swap transactions and open at year end are also mark to market and the resultant loss of
` 168.33 Crores is recognized. This treatment is in line with the March 29, 2008 announcement of Institute of Chartered
Accountants of India.
36.
During the previous financial year, the premium on forward exchange contracts entered into to hedge the liability towards
Syndicated Loans from Foreign Banks (repayable in foreign currency) had been considered as borrowing costs as per AS
16. Accordingly, an amount of ` 64.82 crores had been capitalized and an amount of ` 55.90 Crores (net of depreciation)
had been disclosed as Prior Period Expenses/(Income).
During the current financial year, based on the opinion of Expert Advisory Committee of ICAI, the Corporation has
decapitalized the said premium of ` 64.82 Crores and an amount of ` 52.43 Crores (net of depreciation) has been disclosed
as Prior Period Expenses/(Income).
92
Notes to the Financial Statements for the Year ending 31st March, 2014
37.
Ancillary costs incurred towards raising of Syndicated Loans from Foreign Banks (repayable in foreign currency) is being
amortized over the tenure of the loan. Total amount of such ancillary costs remaining unamortized as on the balance sheet
date is ` 224.28 Crores (2012-13 : ` 118.87 Crores).
38.
During the current year, investments in 6.90% Oil Marketing Companies GOI Special Bonds 2026 amounting to
` 3,500.00 crores have been reclassified from Long Term Investments to Current Investments to improve flexibility in
liquidity. Consequently, an amount of ` 583.18 Crores has been provided in the books of accounts towards diminution in
the value for this investment.
39.
(a)
Current Tax includes MAT Credit availment of ` 10.68 Crores (2012-13: Nil).
(b)
The recognition of MAT Credit Entitlements of ` 568.44 Crore as at March 31, 2014 (` 406.85 Crores as at March 31,
2013) is on the basis of convincing evidence that the Corporation will be able to avail the credit during the period
specified in section 115JAA of the Act.
(c)
Provision for tax for earlier years (written back) / provided of ` 19.82 Crores (2012 13: written back ` 60.62 Crores)
represents additional provision of ` 192.33 Crores (2012 13: ` 72.12 Crores) towards deferred tax, recognition
of MAT Credit Entitlements of ` (169.99 crores) (2012 13: ` (24.89 Crores) and reversal of excess provision of
` (2.53 Crores) (2012 13: ` (107.85 Crores).
40.
To the extent Micro and Small Enterprises have been identified, the outstanding balance, including interest thereon, if any,
as at balance sheet date is disclosed on which Auditors have relied upon :
` /Crores
2013-14
2012-13
12.14
8.06
Principal
Interest
Amounts paid to suppliers under MSMED Act, beyond appointed day during
F.Y. 2013 14 (irrespective of whether it pertains to current year or earlier years)
- Principal
- Interest
Amount of interest due / payable on delayed principal which has already been
paid during the current year (without interest or with part interest)
Amount of interest which is due and payable, which is carried forward from last
year
41.
93
Notes to the Financial Statements for the Year ending 31st March, 2014
2.
b.
c.
d.
e.
f.
g.
h.
The above disclosure does not include following Related Parties for which no disclosure is required as they are
State-Controlled Enterprises as per AS - 18.
1.
2.
(B)
Subsidiaries
a.
b.
c.
d.
b.
c.
d.
e.
` /Crores
2013-14
1.97
48.89
482.06
473.58
0.23
0.47
484.26
522.94
39,697.49
17,935.00
228.99
128.36
41.79
32.20
39,968.27
18,095.56
5.86
15.69
Purchase of goods
HPCL-Mittal Energy Ltd.
Hindustan Colas Ltd.
Aavantika Gas Ltd.
(iii)
2012-13
Sale of goods
30.00
25.00
35.86
40.69
(iv)
4.59
3.92
(v)
2.26
2.33
94
Notes to the Financial Statements for the Year ending 31st March, 2014
` /Crores
Nature of Transactions
(vi)
2013-14
2012-13
10.26
22.39
(5.87)
(8.57)
(86.12)
(97.08)
(81.73)
(83.26)
472.18
769.54
5.00
477.18
769.54
66.18
913.64
31.03.2014
31.03.2013
(1,572.89)
(949.94)
6.37
33.05
13.41
13.26
(1,553.11)
(903.63)
(ii)
42.
2013-14
2012-13
1.74
1.42
0.12
0.10
0.33
0.14
Other benefits
1.57
1.17
Total
3.76
2.83
The Corporation has entered into production sharing oil & gas exploration contracts in India and overseas in consortium
with other body corporate. These consortia are:
Participating Interest of
HPCL in %
31/03/2014
31/03/2013
KK- DWN-2002/2
20
20
KK- DWN-2002/3
20
20
CB- ONN-2002/3
15
15
15
15
In India
Under NELP IV
Under NELP V
AA-ONN-2003/3
95
Notes to the Financial Statements for the Year ending 31st March 2014
Participating Interest of
HPCL in %
31/03/2014
31/03/2013
CY-DWN-2004/1
10
10
CY-DWN-2004/2
10
10
CY-DWN-2004/3
10
10
CY-DWN-2004/4
10
10
CY-PR-DWN-2004/1
10
10
CY-PR-DWN-2004/2
10
10
KG-DWN-2004/1
10
10
KG-DWN-2004/2
10
10
KG-DWN-2004/3
10
10
KG-DWN-2004/5
10
10
KG-DWN-2004/6
10
10
MB-OSN-2004/1
20
20
MB-OSN-2004/2
20
20
RJ-ONN-2004/1
22.22
22.22
RJ-ONN-2004/3
15
15
30
30
Nil
Nil
25
25
25
25
Under NELP VI
Under NELP IX
MB-OSN-2010/2
Outside India
a)
b)
One exploration block name MB-OSN-2010/2 has been awarded under NELP IX Bidding Round; Production Sharing
Contract (PSC) of the same has been signed on 30/08/2012. Joint Operating Agreement signed on February 6, 2014.
Seismic data acquisition is completed and processing & interpretation is planned in FY2014-15.
c)
Two exploration blocks at Egypt were awarded during the FY 2008-09 with GSPC (Operator) and Oil India. HPCL
has 25% participating interest in both of these blocks. Production sharing contract of these blocks is not yet signed.
Consortium has unanimously decided not to proceed further as the project is techno-economically unviable due to
current prevailing conditions in Egypt.
d)
Block WA-388-P was relinquished during the FY 2012-13 on completion of Minimum Work Programme (MWP) under
exploration phase. Drilling of one (1) well was completed as per committed work program, which was declared as
dry.
e)
In addition to the above, the company was awarded Service Contract for development of Cluster-7 Marginal Field
by ONGC. However the same was terminated by ONGC. In view of said termination, HPCL has initiated arbitration
against M3nergy as well as ONGC, which is under process.
96
Notes to the Financial Statements for the Year ending 31st March, 2014
43.
In compliance of AS-27 Financial Reporting of Interest in Joint Ventures, the required information is as under:
a)
India
India
India
India
India
India
India
India
India
India
India
Percentage
of ownership
interest as on
31st March,
2014
48.94
50.00
50.00
16.95
16.00
28.77
25.00
25.00
11.00
11.00
50.00
Percentage
of ownership
interest as on
31st March,
2014
48.82
50.00
50.00
16.95
16.00
28.77
25.00
25.00
8.73
9.38
-
In respect of jointly controlled entities, the Corporations share of assets, liabilities, income, expenses, contingent
liabilities and capital commitments as furnished below on the basis of audited / unaudited financial statements
received from these joint venture companies:
` / Crores
2013-14
(i)
(ii)
(iii)
c)
Contingent Liabilities
Capital Commitments
2012-13
2.49
10,500.71
(564.99)
10,652.77
433.57
8,459.23
146.14
7,985.64
14,099.23
10,126.64
14,089.46
6,627.53
33,959.91
34,423.65
15,393.57
15,799.36
377.43
293.49
170.20
409.87
Corporations Share in aggregate of Contingent Liabilities and Capital Commitments of Jointly Controlled
Operations:
` / Crores
2013 14
Jointly Controlled Operations
Contingent Liabilities
Capital Commitment
224.29
195.34
97
2012 13
198.24
530.96
Notes to the Financial Statements for the Year ending 31st March 2014
44.
45.
Operating Leases - Assets taken on lease primarily consist of leased land taken for the purpose of setting up retail outlets,
depot operations and properties for use by the Corporation. These lease arrangements are normally renewed on expiry
of the term. Amount of lease rental expenses recognized in the Statement of Profit & Loss is given under Note 23 - Other
expenses.
Considering the Government policies and modalities of compensating the oil marketing companies towards underrecoveries, future cash flows have been worked out based on the desired margins for deciding on impairment of related
Cash Generating Units. Since there is no indication of impairment of assets as at Balance Sheet date as per the assessment
carried out, no impairment has been considered. In view of assumptions being technical, peculiar to the industry and
Government policy, the auditors have relied on the same.
46.
During the year 2013-14, an amount of ` 12.82 Crores (2012-13: ` 8.11 Crores) has been charged to revenue towards
Enabling Assets on which the Corporation does not have a control.
47.
Particulars
a)
b)
c)
d)
e)
48.
Maximum amount
outstanding during the
year
Balance as on
31/03/2014
31/03/2013
2013 14
2012 13
107.46
80.00
198.00
107.46
100.00
198.00
107.46
100.00
198.00
45.00
30.00
-
45.00
30.00
-
45.00
30.00
-
45.00
30.00
-
During the financial year 2013 - 14, bridge loan (along with accrued interest) totaling to ` 419.65 crores given to HPCL
Biofuels Ltd., a subsidiary company, has been converted into 41,96,51,511 Non-cumulative 14 years Redeemable
Preference Shares of ` 10 each bearing 5% dividend.
The net worth of said subsidiary company, which is in nascent stage of operation, is partially eroded. Based on the current
price trends of Ethanol and withdrawal of levy sugar mechanism the Corporation expect improvements in the operation
of the subsidiary. Having regard to the said facts, the long terms and strategy nature of investment, conversion of loan
into Non-Cumulative Preference Share and continuing support of the Corporation, the diminution in value is considered
temporary in nature and hence not provided.
49.
The company has investment in Joint Venture entity, viz. Hindustan Mittal Energy Limited, which has set up a Petroleum
Refinery at Bathinda and supplies major part of its production to Corporation. The refinery has started operation in the year
2012 and had incurred losses in the initial years of operation resulting in partial erosion of net worth. The investment is long
term and strategic in nature and has long gestation period. The operation of refinery is expected to stabilize in near future.
Having regard to the above facts, the diminution in value is considered temporary in nature and hence not provided.
98
Notes to the Financial Statements for the Year ending 31st March, 2014
50.
The Employee cost for the previous year 2012-13 included ` 813 Crores towards implementation of Long Term Settlement
of Non-management employees and Superannuation Benefits for all the employees finalized during the said year, including
for the past periods.
51.
During the year, there was an instance of fire in Cooling Water Tower Area in Visakh Refinery. The Company has incurred
an expenses of ` 31.38 Crores towards reconstruction / compensation. Insurance claims are under process and will be
recognized on acceptance.
52.
C.
II.
53.
Guarantees given
Commitments
A.
Estimated amount of contracts remaining to be executed on Capital
Account not provided for
B.
Uncalled liability on partly paid up equity shares
C.
Other Commitements (for Investments in Joint Ventures)
Other Notes
A.
Payment to auditors
- Audit fees
- Other Services
- Reimbursement of expenses
B.
99
` / Crores
2013-14
2012-13
75.80
4,419.81
424.57
224.45
134.16
5,278.80
87.60
4,260.21
377.24
98.90
125.99
4,949.94
7.33
34.11
7.33
25.96
367.34
375.49
286.84
1,071.09
183.44
316.89
267.78
801.39
79.27
79.27
54.91
54.91
2,258.63
-
2,408.32
47.50
756.41
0.21
0.20
0.12
0.53
0.21
0.15
0.07
0.43
57,859.94
85.03
68.91
56,117.40
88.88
126.33
Notes to the Financial Statements for the Year ending 31st March 2014
` / Crores
2013-14
C.
(i)
(ii)
D.
2012-13
485.41
553.92
60,075.57
55,591.13
4,231.03
6,416.82
90.17
86.04
57,479.67
55,934.50
9.83
13.96
6,268.18
9,074.08
- Imported (in %)
29.26
27.42
61.49
64.78
- Indigenous (in %)
70.74
72.58
148.64
171.47
13,865,111
14,354,694
385,753
361,988
E.
Raw Materials
- Imported (in %)
- Imported (in Value)
- Indigenous (in %)
- Indigenous (in Value)
(ii)
ii.
G.
iii.
Axle Oil
iv.
(b)
Lubricating Oils
(c)
Textile Auxiliaries
(d)
Insecticides
(e)
Greases
41
146,226
98,287
334,398
314,429
6,933
1,295
117
103
7,123
4,941
62,003.13
62,971.15
2,283.86
1,875.95
402.24
319.66
(b)
(c)
Capital
78.33
41.63
Revenue
22.29
16.27
100
Notes to the Financial Statements for the Year ending 31st March, 2014
I.
J.
K.
` / Crores
2013-14
300.25
2012-13
274.75
603.61
386.51
237.71
222.68
Information for each class of goods purchased, sold and stocks during the year ended 31st March 2014.
` / Crores
Opening Stock
Closing Stock
2013-14
2012-13
2013-14
2012-13
2013-14
2012-13
2252110
2429276
23392237
22190252
37447727
36785456
2144960
2252110
Value
11,555
11,876
145,137
128,178
211,005
185,486
11,816
11,555
MT
29015
38711
233627
197906
15994
29015
Value
178
247
1,452
1,071
115
178
Axle Oil
MT
41
34732
Value
379
29851
29312
329988
314658
41
29851
302
284
3,736
3,398
302
27
33
6924
1301
189
27
49
171
73
107
103
2553
171
Bulk Petroleum
Products
b.
Lubricating Oil
Base Stocks (Incl.
Transformer oil
Base stock)
d.
Sales*
2012-13
a.
c.
Purchases
2013-14
e.
Lubricating Oils
f.
Textile Auxillaries
MT
MT
Value
MT
Value
g.
Insecticides
MT
h.
Greases
i.
Automative
Accessories
MT
Value
Total
MT
Value
MT
Value
Value
0
0
0
0
28
1492
2337
89
46
6090
5657
1492
13
22
93
83
13
22,190,298 38,024,465
37,305,122
2,198,475
2,312,673
190,049
12,340
12,049
2,312,673
12,049
2,499,748 23,392,326
12,431
145,138
128,179
216,337
101
Notes to the Financial Statements for the Year ending 31st March, 2014
L
Information regarding Primary Segment Reporting as per AS-17 for the year ended March 31, 2014 is as under:
` / Crores
2013-14
2012-13
Downstream Exploration
Petroleum
& Production
Revenue
External Revenue
Inter-segment Revenue
Total Revenue
Result
Segment Results
Less: Unallocated Expenses
Net of unallocated Income
Operating Profit
Less:
Borrowing Cost
Provision for dimunition in
investments
Loss on Sale of Investments
Add:
Interest/Dividend (Incl Share of profit
from PII)
Profit on Sale of Investments
Profit before Tax
Less: Taxes (including Deferred tax /
FBT)
Profit after Tax
Other Information
Segment Assets
Corporate Assets
Total Assets
Segment Liabilities
Corporate Liabilities
Total Liabilities
Capital Expenditure
Depreciation and Amortization
Non cash expenses excluding
depreciation
Total
Downstream
Petroleum
Exploration
& Production
Total
223,481.08
223,481.08
223,481.08
223,481.08
206,962.89
206,962.89
206,962.89
206,962.89
4,127.96
(203.97)
3,923.99
1,934.22
(54.81)
1,879.41
4,127.96
(203.97)
3,923.99
1,934.22
(54.81)
1,879.41
65,939.55
40.38
33,479.47
870.10
5,147.91
2,188.44
6.71
1,336.36
1,412.80
736.83
-
(181.79)
35.53
764.71
861.69
2,615.51
1,474.56
881.74
1,733.77
569.85
904.71
65,979.93
11,598.17
77,578.09
34,349.58
4,866.11
39,215.69
5,154.62
2,188.44
64,499.89
40.38
42,117.64
666.13
4,382.91
1,934.42
1.34
215.29
64,540.27
11,704.45
76,244.72
42,783.77
4,077.23
46,861.00
4,384.25
1,934.42
1,285.95
Notes:
1.
2.
3.
b)
c)
Other income (excluding interest income, dividend income and investment income)
102
Notes to the Financial Statements for the Year ending 31st March, 2014
54.
EMPLOYEE BENEFITS
Defined Benefit Plans - As per actuarial valuation
` / Crores
Leave
Encashment
Gratuity
Pension
Post
Retirement
Medical
Benefit
Long
Service
Awards
Ex - Gratia
Death
Benefits
Resettlement
Allowance
Funded
Funded
Non Funded
Non Funded
Non Funded
Non Funded
Non Funded
Non - Funded
Particulars
Refer foot-notes :
1
Change in Defined Benefit Obligations (DBO) during the year ended March 31, 2014.
Defined Benefit Obligation at the
529.09
489.55
55.50
369.81
beginning of the year
433.77
447.73
51.15
315.81
Interest Cost
45.30
38.18
4.09
31.69
38.70
37.59
4.03
27.50
Current Service Cost
37.16
4.10
0.06
35.96
21.56
8.52
0.09
16.80
Past Service Cost (Vested Benefits)
Benefit Paid
(32.73)
(8.85)
(19.16)
(28.03)
(7.75)
(18.14)
Acturial (gain)/loss on Obligation
(34.19)
(35.46)
15.93
(1.46)
35.06
23.74
7.98
27.84
Defined Benefit Obligation at the end
577.36
463.64
66.73
416.84
of the year
529.09
489.55
55.50
369.81
Change in Fair Value of Assets during the year ended March 31, 2014.
Fair Value of Plan Asset at the
535.87
468.62
N/A
N/A
beginning of the year
488.93
454.47
N/A
N/A
Expected return on Plan Assets
50.83
41.76
N/A
N/A
42.05
35.24
N/A
N/A
Acturial gain/(loss) on Plan Assets
2.10
2.31
N/A
N/A
4.89
6.94
N/A
N/A
Contribution by employer
48.39
27.76
8.85
19.16
7.75
18.14
Benefit Paid
(32.73)
(8.85)
(19.16)
(28.03)
(7.75)
(18.14)
Fair Value of Plan Asset at the end
637.19
507.72
N/A
N/A
of the year
535.87
468.62
N/A
N/A
Net asset/(liability) recognized in balance sheet as at March 31, 2014.
Defined Benefit Obligation at the end
577.36
463.64
66.73
416.84
of the year
529.09
489.55
55.50
369.81
Fair Value of Plan Asset at the end
637.19
507.72
of the year
535.87
468.62
Amount recognised in the Balance
59.83
44.08
(66.73)
(416.84)
Sheet
6.78
(20.93)
(55.50)
(369.81)
Components of employer expenses
Current Service Cost
37.16
4.10
0.06
35.96
21.56
8.52
0.09
16.80
Interest Cost
45.30
38.18
4.09
31.69
38.70
37.59
4.03
27.50
Past Service Cost (Vested Benefits)
Expected Return on Plan Asset
(50.83)
(41.76)
(42.05)
(35.24)
Acturial (gain)/loss
(36.29)
(37.77)
15.93
(1.46)
30.17
16.80
7.98
27.84
Total expenses recognized durng
(4.66)
(37.25)
20.08
66.19
the year
48.38
27.67
12.10
72.14
103
69.74
58.69
6.05
5.40
11.06
9.12
(10.36)
(8.48)
(9.54)
5.01
66.95
69.74
21.57
22.67
1.48
1.74
(6.09)
(4.29)
20.61
1.45
37.57
21.57
25.72
28.44
1.86
2.19
(5.01)
(5.28)
(0.88)
0.37
21.69
25.72
2.45
2.33
0.22
0.22
0.40
0.39
(0.24)
(0.17)
(0.59)
(0.32)
2.24
2.45
N/A
N/A
N/A
N/A
N/A
N/A
10.36
8.48
(10.36)
(8.48)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
6.09
4.29
(6.09)
(4.29)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
5.01
5.28
(5.01)
(5.28)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
0.24
0.17
(0.24)
(0.17)
N/A
N/A
66.95
69.74
(66.95)
(69.74)
37.57
21.57
(37.57)
(21.57)
21.69
25.72
(21.69)
(25.72)
2.24
2.45
(2.24)
(2.45)
11.06
9.12
6.05
5.40
(9.54)
5.01
7.57
19.53
1.48
1.74
20.61
1.45
22.09
3.19
1.86
2.19
(0.88)
0.37
0.98
2.56
0.40
0.39
0.22
0.22
(0.59)
(0.32)
0.03
0.29
Notes to the Financial Statements for the Year ending 31st March, 2014
` / Crores
Leave
Encashment
Gratuity
Pension
Post
Retirement
Medical
Benefit
Long
Service
Awards
Ex - Gratia
Death
Benefits
Resettlement
Allowance
Funded
Funded
Non Funded
Non Funded
Non Funded
Non Funded
Non Funded
Non - Funded
Particulars
Refer foot-notes :
5
Actuarial Assumptions
Discount Rate
9.36%
9.36%
9.36%
9.36%
9.36%
9.36%
9.36%
Note 9
Note 9
Salary escalation
7.00%
7.00%
5.00%
Inflation
Mortality rate
6
47.40%
47.40%
N/A
N/A
N/A
N/A
N/A
N/A
Bonds / Debentures
31.90%
31.90%
N/A
N/A
N/A
N/A
N/A
N/A
Equity Shares
Others
7
9.36%
5.08%
5.08%
N/A
N/A
N/A
N/A
N/A
N/A
15.62%
15.62%
N/A
N/A
N/A
N/A
N/A
N/A
456.23
392.87
35.04
35.65
38.02
27.73
Foot Notes :
1
Leave Encashment : All employees are entitled to avail earned leave and sick leave during the service period and the same
can be encashed on superannuation, resignation, termination or by nominee on death. Further, the accumulated earned
leave can also be encashed during the service period. The contribution for increase in actuarial liability as of March 31,
2014 over March 31, 2013 towards leave encashment is funded to LIC. As per the practice followed, the payment made to
employees during the year to the extent of ` 78.94 Crores is not claimed from LIC, hence, benefit paid during the year is
shown as NIL in the above table. Total expenses recognised in Profit & Loss Account of this benefit is ` (4.66) Crores (i.e.
provision of ` 48.26 Crores towards increase in liability and interest earned from LIC is ` 52.93 Crores).
2
Gratuity : All employees are entitled to receive gratuity as per the provisions of Payment of Gratuity Act, 1972.
3
Pension : The employees covered by the Pension Plan of the Corporation are entitled to receive monthly pension for life.
4
Post Retirement Medical Benefit : The serving and superannuated employees are covered under medical insurance policy
taken by Corporation. It provides reimbursement of medical expenses for self and dependents as per the terms of the
policy.
5
Long Service Awards : The Corporation has policy of giving service awards to its employees in the form of momento on
completion of specified length of service and superannuation.
6
Ex-gratia : The ex-employees of Corporation covered under the Scheme are entitled to get ex-gratia based on the grade at
the time of their retirement. The benefit will be paid to eligible employees till their survival, and after that, till the survival of
their spouse.
7
Death Benefits : The families of deceased employees are paid at a specified percentage of last drawn salary till the notional
date of retirement age under the provisions of Superannuation Benefit Fund Scheme.
8
Resettlement Allowance : At the time of retirement, the employees are allowed to permanently settle down at a place other
than the location of the last posting.
9
The fair value of the assets of Provident Fund Trust as of balance sheet date is greater than the obligation, including
interest, and also the returns on these plan assets including the amount already provided are sufficient to take care of PF
interest obligations, over and above the fixed contribution recognized.
10
The expected return on plan assets is based on market expectation, at the beginning of the period, for returns over the
entire life of the related obligation.
11
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.
12
Figures in italics represent last year figures
55. Previous years figures are reclassified / regrouped wherever necessary.
104
Parama Sen
Principal Director of Commercial Audit
& ex-officio Member, Audit Board-II, Mumbai
Place : Mumbai
Date : 9 July 2014
105
We have audited the accompanying Consolidated Financial Statements of Hindustan Petroleum Corporation Limited
(the Company), its subsidiaries and jointly controlled entities, (collectively referred to as the Group), refer note No 1.1
to the attached consolidated financial statements, which comprise the consolidated Balance Sheet as at March 31, 2014,
and the consolidated Statement of Profit and Loss and consolidated Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory information, in which, is incorporated financial statements
of Visakh Refinery, audited by the branch auditor, whose report has been considered in preparing this report.
The Companys management is responsible for the preparation of these consolidated financial statements that give a
true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows
of the Company in accordance with accounting principles generally accepted in India. This responsibility includes the
design, implementation and maintenance of internal control relevant to the preparation and presentation of the consolidated
financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
3.
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted
our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those
Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free from material misstatement.
4.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditors judgment, including the assessment of the
risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the Companys preparation and presentation of the
consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in
the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
5.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
6.
In our opinion the consolidated financial statements have been prepared by the Companys Management in accordance
with the requirements of the Accounting Standards (AS) 21- Consolidated Financial Statements, Accounting Standards (AS)
23- Accounting for Investments in Associates in Consolidated Financial Statements, and Accounting Standards (AS) 27
Financial Reporting of Interests in Joint Ventures notified under Section 211(3C) of the Companies Act 1956.
7.
In our opinion and to the best of our information and according to the explanations given to us and based on the consideration
of the reports of the other auditors on the financial statements of the subsidiaries and jointly controlled entities as noted
below, the consolidated financial statements give a true and fair view in conformity with the accounting principles generally
accepted in India:
(a) in the case of the consolidated Balance Sheet, of the state of affairs of the Group as at March 31, 2014;
(b) in the case of the consolidated Statement of Profit and Loss, of the profit of the Group for the year ended on that date;
and
(c) in the case of the consolidated Cash Flow Statement, of the cash flows of the Group for the year ended on that date.
106
Emphasis of Matter
8.
Other Matter
9.
A. K. Pradhan
Partner
Membership No. 032156
Firm No. 101745W
107
II.
` / Crores
31.03.2014
31.03.2013
3
4
339.01
13,659.72
13,998.73
1.24
3.65
339.01
13,019.56
13,358.57
234.13
1.48
5
6
7A
7B
26,143.43
3,342.13
7,333.83
597.17
37,416.56
17,620.00
3,733.94
6,287.30
508.21
28,149.45
8
9
10A
10B
21,162.40
14,749.39
7,611.38
1,775.26
45,298.43
96,718.61
25,572.23
14,359.20
8,738.37
1,862.37
50,532.17
92,275.80
11
12
13
13A
38,752.78
196.06
6,155.29
1.39
16.66
566.79
1,661.75
229.23
47,579.95
35,520.68
199.00
6,562.15
3.12
16.69
4,066.79
1,601.11
157.68
48,127.22
5,124.04
24,895.48
6,302.17
2,178.90
10,274.25
363.82
2,360.86
20,733.41
5,614.10
864.71
14,209.23
366.27
49,138.66
96,718.61
44,148.58
92,275.80
TOTAL
ASSETS
(1) Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets
(ii) Intangible Assets
(iii) Capital Work-In-Progress
(iv) Intangible Under Development
(b) Goodwill on Consolidation
(c) Non-Current Investments
(d) Long-Term Loans and Advances
(e) Other Non-Current Assets
14
15
16
17
18
19
20
21
22
TOTAL
SHRIKANT M. BHOSEKAR
Company Secretary
A K PRADHAN
Partner
Membership No. 032156
108
Consolidated Statement of Profit and Loss for the year ending 31st March, 2014
Notes
` / Crores
2013-14
2012-13
SHRIKANT M. BHOSEKAR
Company Secretary
A K PRADHAN
Partner
Membership No. 032156
109
Consolidated Cash Flow Statement for the Year Ended 31st March, 2014
` / Crores
Cash Flow from Operating Activities
Net Profit before Tax & Extraordinary items
Adjustments for :
Depreciation / amortisation
Depreciation (prior period)
Profit on sale of Current investment
Amortisation of foreign currency monetary item translation difference account
Utilisation of securities premium towards amortisation of premium on
Redemption on debentures
Loss on sale/write off of fixed assets/ CWIP
Amortisation of capital grant
Spares written off
Provision for diminution in investments
Borrowing costs
Gain on settlement of deferred sales tax loan
Provision for doubtful debts & receivable
Interest income
Share of profit from PII
Dividend income received
Loss on sale of current investments
Operating Profit before Changes in Assets and Liabilities {Sub Total - (i)}
2013-14
2012-13
1,325.03
881.72
3,010.69
(0.21)
(5.74)
(9.47)
(30.72)
2,364.66
(49.10)
2.00
(19.97)
17.57
(0.16)
0.18
736.83
2,392.94
(394.56)
15.88
(559.85)
(0.56)
(52.18)
6,445.67
12.93
(0.14)
0.60
(181.79)
1,773.27
49.13
(555.80)
(0.61)
(43.95)
33.58
4,266.53
(703.96)
3,657.60
(4,162.25)
1,710.11
501.50
6,947.17
(433.06)
6,514.11
(1,607.00)
(3,547.08)
2,251.94
515.04
(2,387.10)
1,879.43
(164.40)
1,715.03
(5,982.47)
38.28
185.54
(7,242.06)
777.68
(74.23)
548.44
52.18
(5,158.03)
679.04
561.00
43.95
(5,254.62)
A.
(A)
110
Consolidated Cash Flow Statement for the Year Ended 31st March, 2014
` / Crores
C. Cash Flow from Financing Activities
Share Application Money Received / (Paid)
Loans Raised
Premium on issue of Shares on Preferential basis
Interest paid on Loans
Dividend paid (including Dividend Distribution Tax)
Net Cash Flow from Financing Activities
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS
2013-14
2012-13
(C)
(232.89)
2,268.51
(2,474.61)
(337.93)
(776.92)
100.99
4,612.68
4.44
(1,800.24)
(340.62)
2,577.25
(A+B+C)
579.16
(962.34)
12.11
11.44
161.05
553.69
0.06
726.91
(1,381.18)
(654.27)
231.63
490.88
0.06
734.01
(425.94)
308.07
13.16
12.11
69.92
1,781.79
1,864.87
(1,939.98)
(75.11)
161.05
553.69
0.06
726.91
(1,381.18)
(654.27)
579.16
(962.34)
SHRIKANT M. BHOSEKAR
Company Secretary
A K PRADHAN
Partner
Membership No. 032156
111
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
1.
BASIS OF PREPARATION
1.1
The Consolidated Financial Statements (CFS) relates to parent company, Hindustan Petroleum Corporation Limited
(HPCL), its subsidiary companies and its interest in Joint Ventures, in the form of jointly controlled entities (collectively
referred to as the Group).
The financial statements are prepared under historical cost convention in accordance with Generally Accepted Accounting
Principles (GAAP), Accounting Standards referred to in the Companies (Accounting Standards) Rules, 2006 issued by
the Central Government and the relevant provisions of the Companies Act, 1956 read with the General circular 15/2013
dated 13th September 2013 of the Ministry of Corporate Affairs in respect of the Companies Act, 2013. All income and
expenditure having material bearing are recognised on accrual basis, except where otherwise stated. Necessary estimates
and assumptions of income and expenditure are made during the reporting period and difference between the actual and
the estimates are recognised in the period in which the results materialise.
In particular these CFS are prepared in accordance with Accounting Standard on Consolidated Financial Statements
(AS-21), and Financial Reporting of Interests in Joint Ventures (AS-27) notified under Companies (Accounting Standards)
Rules, 2006.
1.2
Principles of Consolidation
The CFS are prepared, as far as possible, using uniform significant accounting policies for the like transactions and other
events in similar circumstances and are presented to the extent possible, in the same manner as HPCLs separate financial
statements.
The Financial Statements of HPCL and its subsidiaries have been consolidated on a line-by-line basis by adding together
the book values of like items of assets, liabilities, income and expenses, the intra group balance and intra group transactions
and unrealised profits or losses resulting from intra group transactions are fully eliminated. The share of Minority Interest in
the Subsidiaries has been disclosed separately in CFS.
The financial statements of Joint Ventures have been consolidated by applying proportionate consolidation method on a
line-by-line basis on items of assets, liabilities, income and expenses after eliminating proportionate share of intra group
balance, intra group transactions and unrealized profits or losses.
Figures pertaining to the Subsidiary Companies/Joint Ventures have been reclassified, wherever necessary, to conform to
the parent company, HPCLs Financial Statements.
For certain items, HPCL, its subsidiaries and Joint ventures have followed different accounting policies. However impact of
the same is not material.
112
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
1.3
(ii)
Subsidiaries
CREDA - HPCL Biofuels Ltd. (CHBL)
HPCL Biofuels Ltd. (HBL)
Prize Petroleum Company Ltd. (PPCL)***
HPCL Rajasthan Refinery Ltd. (HRRL) (w.e.f. 25th March, 2014)
Joint Ventures
HPCL - Mittal Energy Ltd. (HMEL)***
Hindustan Colas Ltd. (HINCOL)
South Asia LPG Co. Pvt. Ltd. (SALPG)
Mangalore Refinery and Petrochemicals Ltd. (MRPL)***
Bhagyanagar Gas Ltd. (BGL)
Petronet India Ltd. (PIL)**
Petronet MHB Ltd. (PMHBL)
Aavantika Gas Ltd. (AGL)
GSPL India Gasnet Ltd. (GIGL) (w.e.f 4th July, 2012)
GSPL India Transco Ltd. (GITL) (w.e.f 4th July, 2012)
HPCL Shapoorji Energy Ltd. (HSEL) (w.e.f. 27th March, 2014)
India
India
India
India
74.00%
100.00%
100.00%
74.00%
74.00%
100.00%
100.00%
-
India
India
India
India
India
India
India
India
India
India
India
48.94%
50.00%
50.00%
16.95%
25.00%
16.00%
28.77%
25.00%
11.00%
11.00%
50.00%
48.82%
50.00%
50.00%
16.95%
25.00%
16.00%
28.77%
25.00%
9.38%
8.73%
-
**
Proportionate consolidation in respect of Investments in Petronet India Limited has been discontinued in the
preparation of CFS as the management has provided for full diminution in the value of Investment during FY 06-07.
***
HPCL Mittal Energy Limited has a 100% subsidiary namely HPCL Mittal Pipelines Limited
Manglore Refinery and Petrochemical limited has two joint ventures namely shell MRPL aviation fuel services limited
(MRPL is holding 50%) and Mangalam Retail Services Limited (MRPL is holding 45%). Prize Petroleum Company limited
has wholly owned subsidiary namely Prize Petroleum PTE Limited (w.e.f 23/01/2014). Consolidated Financial Statements
of both these entities are considered for the purpose of consolidation.
2.
2.1
Tangible Assets
2.2
2.3
a.
b.
c.
Technical know-how /licence fee relating to plants/ facilities are capitalized as part of cost of the underlying asset.
Intangible Assets
a.
Cost of Right of Way for laying pipelines is capitalised as Intangible Asset and is amortised over a period of 99 years.
b.
Technical know-how /licence fee relating to production process and process design are recognized as Intangible
Assets.
c.
Cost of Software directly identified with hardware is capitalised along with the cost of hardware. Application software
is capitalised as Intangible Asset.
Related expenditure (including temporary facilities and crop compensation expenses) incurred during construction
period in respect of plan projects and major non-plan projects are capitalised.
b.
Financing cost incurred during the construction period on loans specifically borrowed and utilised for projects is
capitalised. Financing cost includes exchange rate variation to the extent regarded as an adjustment to interest cost.
113
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
c.
2.4
2.5
2.6
2.7
2.8
2.9
Financing cost, if any, incurred on general borrowings used for projects during the construction period is capitalised
at the weighted average cost.
Depreciation / Amortisation
a.
Depreciation on Fixed Assets is provided on the Straight Line method, in the manner and at the rates prescribed
under Schedule XIV to the Companies Act, 1956 and is charged pro rata on a monthly basis on assets, from / up to
and inclusive of the month of capitalisation / sale, disposal or deletion during the year.
b.
All assets costing up to ` 5000/-, other than LPG cylinders and pressure regulators, are fully depreciated in the year
of capitalisation.
c.
Premium on leasehold land is amortised over the period of lease.
d.
Machinery Spares, which can be used only in connection with an item of fixed asset and the use of which is expected
to be irregular, are depreciated over a period not exceeding the useful life of the principal item of fixed asset.
e.
Intangible Assets other than application software and cost of right of way are amortized on a straight line basis over
a period of ten years or life of the underlying plant/facility, whichever is earlier.
f.
Application software are normally amortised over a period of four years, or over its useful life, whichever is earlier.
Impairment of Assets
At each balance sheet date, an assessment is made of whether there is any indication of impairment. An impairment loss
is recognised whenever the carrying amount of assets of cash generating units (CGU) exceeds their recoverable amount.
Foreign Currency Transactions
a.
Foreign Currency transactions during the year are recorded at the exchange rates prevailing on the date of
transactions.
b.
All foreign currency assets, liabilities and forward contracts are restated at the rates prevailing at the year end.
c.
All exchange differences are dealt with in the Statement of Profit and Loss including those covered by forward
contracts, where the premium / discount arising from such contracts are recognised over the period of contracts.
However, foreign exchange differences on long term foreign currency monetary items relating to acquisition of
depreciable assets are adjusted to the carrying cost of the assets and in other cases, if any, accumulated in Foreign
Currency Monetary Item Translation Difference Account and amortised over the balance period of loan.
d.
The realised gain or loss in respect of commodity hedging contracts, the pricing period of which has expired during
the year, are recognised in the Statement of Profit and Loss along with the underlying transaction. However, in
respect of contracts, the pricing period of which extends beyond the Balance Sheet date, suitable provision is made
for likely loss, if any.
Investments
a.
Long-Term Investments are valued at cost and provision for diminution in value thereof is made, wherever such
diminution is other than temporary.
b.
Current Investments are valued at the lower of cost and fair value.
Inventories
a.
Crude oil is valued at cost on First in First out (FIFO) basis or at net realisable value, whichever is lower.
b.
Raw materials for lubricants and finished lubricants are valued at weighted average cost or at net realisable value,
whichever is lower.
c.
Stock-in process is valued at raw material cost plus cost of conversion or at net realisable value, whichever is lower.
d.
Finished products other than Lubricants are valued at cost (on FIFO basis month-wise) or at net realisable value,
whichever is lower.
e.
Empty packages are valued at weighted average cost.
f.
Stores and spares are valued at weighted average cost. Stores and Spares in transit are valued at cost.
g.
Value of surplus, obsolete and slow moving stores and spares, if any, is reduced to net realisable value. Surplus
items, when transferred from completed projects are valued at cost / estimated value, pending periodic assessment /
ascertainment of condition.
Duties on Bonded Stocks
Excise / Customs duty is provided on stocks stored in Bonded Warehouses (excluding goods exempted from duty /
exports or where liability to pay duty is transferred to consignee).
114
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
2.10 Grants
a.
In case of depreciable assets, the cost of the asset is shown at gross value and grant thereon is treated as Capital
Grants, which is recognised in the Statement of Profit & Loss over the period and in the proportion in which
depreciation is charged.
b.
Grants received against revenue items are recognised as income.
2.11 Provisions
A provision is recognised when there is a present obligation as a result of a past event and it is probable that an outflow of
resources will be required to settle the obligation in respect of which a reliable estimate can be made.
2.12 Exploration and Production Expenditures
Successful Efforts Method of accounting is followed for Oil & Gas exploration and production activities as stated below:
a.
Cost of surveys, studies, carrying and retaining undeveloped properties are expensed out in the year of incurrence.
b.
Cost of acquisition, drilling and development are treated as Capital Work-in-Progress when incurred and are
capitalised when the well is ready to commence commercial production.
c.
Accumulated costs on exploratory wells in progress are expensed out in the year in which they are determined to be
dry.
The proportionate share in the assets, liabilities, income and expenditure of joint operations are accounted as per the
participating interest in such joint operations.
2.13 Employee Benefits
Liability towards long term defined employee benefits - leave encashment, gratuity, pension, post retirement medical
benefits, long service awards, ex-gratia, death benefits and resettlement allowance are determined on actuarial valuation
by independent actuaries at the year-end by using Projected Unit Credit method. Liability so determined is funded in the
case of leave encashment and gratuity, and provided for in other cases.
In respect of Provident Fund, the contribution for the period is recognized as expense and charged to Statement of Profit
& Loss.
Short term employee benefits are recognized as an expense at an undiscounted amount in the Statement of Profit & Loss
of the year in which the related services are rendered.
2.14 Revenue Recognition
a.
Sales are recorded based on significant risks and rewards of ownership being transferred in favour of the customer.
b.
Sales are net of discount, include applicable excise duty, surcharge and other elements as are allowed to be
recovered as part of the price but excludes VAT/sales tax.
c.
Claims, including subsidy on LPG, HSD and SKO, from Government of India are booked on in principle acceptance
thereof on the basis of available instructions / clarifications.
d.
Dividend income is recognised when the Companys right to receive the dividend is established.
e.
Income from sale of scrap is accounted for on realisation.
f.
Interest income is recognised on a time proportion basis taking into account the amount outstanding and the
applicable interest rate.
2.15 Taxes on Income
a.
Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961.
b.
Deferred tax liability/asset on account of timing difference between taxable and accounting income is recognised
using tax rates and tax laws enacted or substantively enacted as at the Balance Sheet date. In the event of unabsorbed
depreciation or carry forward of losses, deferred tax assets are recognized, if there is virtual certainty that sufficient
future taxable income will be available to realize such assets.
c.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, is considered as an asset when it is probable that
the future economic benefits associated with it, will flow to the Corporation.
2.16 Contingent Liabilities and Capital Commitments
a.
Contingent Liabilities are disclosed in respect of:
a.
A possible obligations that arise from past events but their existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the control of the Company or
b.
A present obligation where it is not probable that an outflow of resources embodying economic benefit will be
required to settle the obligations or a reliable estimate of the amount of obligation cannot be made.
115
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
Contingent Liabilities are considered only for items exceeding ` 5 lakhs in each case. Contingent Liabilities in respect
of show cause notices are considered only when converted into demands. Capital Commitments are considered
only for items exceeding ` 1 lakh in each case.
2.17 Accounting / Classification of Expenditure and Income
a.
Insurance claims are accounted on acceptance basis.
b.
All other claims/entitlements are accounted on the merits of each case/realisation.
c.
Raw materials consumed are net of discount towards sharing of under-recoveries.
d.
Income and expenditure of previous years, individually amounting to ` 5 lakhs and below are not considered as prior
period items.
Significant Accounting Policies in respect of Joint Ventures & Subsidiary Companies
HMEL
1)
Derivative instruments
In accordance with the Institute of Chartered Accountants of India (lCAl) announcement, derivative contracts, other than
foreign currency forward contracts covered under AS 11, are marked to market on a portfolio basis, and the net loss, if any,
after considering the offsetting effect of gain on the underlying hedged item, is charged to the statement of profit and loss.
Net gain, if any, after considering the offsetting effect of loss on the underlying hedged item, is ignored.
2)
Premium on Redemption / Discount on issue of Debentures
Premium on redemption / discount on issue of debentures, net of tax impact, which is not eligible for capitalization, is first
adjusted against the securities premium account to the extent it is available and the balance is charged to the statement
of profit and loss.
PPCL
1)
Pre-producing Properties:
a.
All acquisition costs, exploration costs involved in drilling and equipping exploratory and appraisal wells, cost of
drilling exploratory type stratigraphic test wells are initially capitalized as Exploratory Wells under Pre-producing
Properties till the time these are either transferred to Producing Properties on completion of commencement of
commercial production or expensed in the year when determined to be dry or of no further use, as the case may be.
b.
All costs relating to development wells are initially capitalized as development Wells under Pre-producing Properties
and transferred to producing properties on completion of commencement of commercial production.
c.
In respect of the wells pending completion of commencement of commercial production, all the expenses incurred
net of the billing raised on test production supplied are classified as Pre-producing Properties.
2)
Producing Properties:
Producing properties are created in respect of fields/blocks having proved developed Oil and Gas reserves, when the well
in the fields/blocks is ready to commence commercial production.
Cost of successful exploratory wells, development wells, related equipments, facilities, hydrocarbon rights,
concessions and applicable acquisition costs are capitalized and reflected as producing properties
3)
Depletion of Producing Properties:
a.
Producing properties including acquisition cost are depleted using the Unit of Production method (UOP)
based on the related Proved Developed Reserves in accordance with guidance note on Accounting for Oil &
Gas producing activities.
b.
Interest capitalized on producing properties including acquisition cost, as required under AS-16 (borrowing
cost), are also depleted using the Unit of Production Method.
c.
Proved and Developed Reserves of Oil and Gas are being technically assessed regularly and are finally
reviewed and estimated at the end of each year in house by following International practices.
4)
Abandonment Cost:
a.
The estimated liability towards costs relating to dismantling, abandoning and restoring well sites and allied
facilities of fields/blocks are recognized as cost based on the technical assessment available.
b.
The abandonment cost on exploratory dry well is charged as expense when incurred.
The actual cost incurred on abandonment is adjusted against the liability and the ultimate gain or loss is recognized in the
Statement of Profit and Loss, when the designated filed/ block ceases to produce.
b.
116
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
31.03.2014
31.03.2013
3.
SHARE CAPITAL
A.
Authorised
75,000 Cumulative Redeemable Preference Shares of ` 100/- each
34,92,50,000 Equity Shares of ` 10/- each
B.
0.75
349.25
350.00
0.75
349.25
350.00
339.33
0.70
338.63
0.39
339.01
339.33
0.70
338.63
0.39
339.01
Notes :
(a)
Details of shares held by each shareholder holding more than 5% shares in the Company
Name of shareholder
President of India
Life Insurance Corporation of India
(b)
31.03.2014
% Holding
No. of Shares
51.11
173,076,750
9.85
33,359,022
31.03.2013
% Holding
No. of Shares
51.11
173,076,750
9.84
33,332,314
4.
117
31.03.2013
0.08
0.08
1.56
1.56
0.78
0.78
1.56
1,082.93
30.72
1,052.21
1,098.46
4.44
19.97
1,082.93
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
31.03.2014
31.03.2013
D.
E.
F.
G.
H.
I.
118
407.03
137.77
269.25
275.55
438.70
227.52
259.19
407.03
3.66
0.16
3.50
3.80
0.14
3.66
1.40
1.40
1,762.07
35.86
0.26
175.81
1,974.00
1,566.18
62.98
40.72
92.19
1,762.07
(4.66)
175.65
9.47
161.52
(6.66)
(2.00)
(4.66)
9,765.49
1,080.37
10,845.86
137.77
269.25
175.81
524.87
9,659.78
501.30
10,161.08
227.52
259.19
0.78
92.19
287.83
86.76
10,189.90
13,659.72
46.46
9,765.49
13,019.56
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
31.03.2014
5.
31.03.2013
545.00
545.00
975.00
975.00
97.88
97.63
499.18
497.92
623.98
622.40
0.36
2.73
11.53
17.15
6.93
10.29
262.70
308.80
14.90
10.31
Other Banks
3,298.89
2,316.22
4,252.84
3,180.97
126.30
10,589.19
8,710.72
7,796.38
7,063.42
5,992.00
244.70
440.32
200.19
598.64
678.19
4.89
From Others
Rupee Loans from Financial Institutions
(Includes ` 8,806.49 Crores (2012-13 : ` 6,881.92 Crores) towards share of jointly
controlled entities)
Unsecured
From Banks
48.93
187.82
668.51
539.53
15,554.24
8,909.28
26,143.43
17,620.00
119
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
31.03.2014
6.
31.03.2013
224.70
1,964.22
2,188.92
386.21
349.21
735.42
5,111.30
419.75
5,531.05
3,342.13
4,063.39
405.97
4,469.36
3,733.94
2.32
7.52
7,173.96
3.02
0.04
154.49
7,333.83
6,143.67
6.54
0.15
129.42
6,287.30
597.17
507.88
0.33
597.17
508.21
825.00
4,186.22
91.08
7.99
1,939.98
975.00
1,485.76
2.69
1,381.18
7,050.27
3,844.63
120
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
31.03.2014
Unsecured
Others Loans and advances
Short Term Loans from Banks (repayable in foreign currency)
Rupee Loans from Banks
Clean Loans from Banks
Commercial Papers
31.03.2013
41.04
13,471.09
600.00
14,112.13
18.75
20,219.63
40.22
1,449.00
21,727.60
21,162.40
25,572.23
14,749.39
14,749.39
14,359.20
14,359.20
687.95
113.30
4.10
0.02
2,544.45
196.98
2.09
0.02
146.41
60.76
0.01
4.92
12.41
6,581.50
7,611.38
130.38
46.52
0.01
5.11
8.06
5,804.75
8,738.37
TRADE PAYABLES
Trade Payables
(Includes ` 919.72 Crores (2012-13 : ` 1725.92 Crores) towards share of jointly controlled entities)
* Includes mainly for HPCL - Statutory Liabilities of ` 2,518.81 Crores (2012 - 13: ` 2,062.46 Crores), Liabilities towards
Forward Exchange Contracts of ` 386.40 Crores (2012 - 13: ` 653.96 Crores), Liabilities relating to retention money payable
to Suppliers within one year, Supplies / Project related payables, etc. ` 2,821.93 Crores (2012 - 13: ` 2,352.81 Crores).
31.03.2014
10B. SHORT TERM PROVISIONS
Other Employee Benefits
Others
Provision for Tax (net of advance tax)
Provision for proposed dividend
Fringe Benefit Tax
Tax on Distributed Profits
Other Provisions
(Includes ` 56.20 Crores (2012-13 : ` 61.77 Crores) towards share of jointly controlled
entities)
121
31.03.2013
849.15
1,467.78
262.41
524.87
0.16
91.86
46.81
1,775.26
1.56
287.83
0.16
49.91
55.13
1,862.37
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
11.
TANGIBLE ASSETS
` / Crores
Sr.
No.
Description
1
2
3
4
5
6
7
8
9
10
Land -Freehold
Buildings
Plant & Equipment
Furniture & Fixtures
Transport Equipment
Office Equipment
Roads and Culverts
Leasehold Property - Land
Railway Siding & Rolling Stock
Unallocated Capital
Expenditure on Land
Development
11 Assets held for Disposal
Grand Total
(Includes share of jointly
controlled entities)
Previous Year
12.
1.48
51,290.74
13,841.03
6,250.54
626.60
1.48
153.06
7.90
0.11
57,388.13 15,770.06
14,460.11 1,111.45
2,962.95
765.66
0.11
97.66
6.87
18,635.35
1,870.24
38,752.78
12,589.87
1.37
35,520.68
12,729.58
45,313.23
6,854.76
877.62
51,290.74 13,610.81
2,240.05
80.80
15,770.06
35,520.68
31702.41
INTANGIBLE ASSETS
` / Crores
Sr.
No.
1
2
3
4
Description
Right of Way
Technical / Process Licenses
Software
Share of Intangible Assets in
JVs :
ONGC Marginal Fields
(PI - 50%)
Project Sanganpur
(PI - 50%)
Grand Total
(Includes share of jointly
controlled entities)
Previous Year
Depreciation / Amortisation
Net Block
As at
For the DeducAs at
As at
As at
1st Apr,
Year
tions 31st Mar, 31st Mar, 31st Mar,
2013
2014
2014
2013
1.77
1.66
3.43
54.67
47.52
27.80
9.23
37.03
45.69
35.20
141.28
29.18
0.00
170.45
80.16
100.57
9.86
9.86
0.81
0.14
0.95
8.90
9.05
6.75
6.75
0.09
0.01
0.10
6.65
6.66
370.75
15.28
37.30
6.07
0.01
-
408.04
21.35
171.75
6.61
40.22
17.07
0.00
-
211.97
23.68
196.06
-2.33
199.00
8.67
277.21
95.64
2.10
370.75
138.17
35.23
1.66
171.75
199.00
139.03
122
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
Significant notes of respective components for tangible and intangible assets are given below:
(figures for joint ventures are reported at total amounts and not on proportionate basis)
1.
HPCL
a.
Includes Gross Block of ` 73.30 Crores (2012-2013: ` 73.34 Crores) being HPCLs Share of Cost of Land & Other
Assets jointly owned with other Oil Companies.
b.
Includes Gross Block of ` 35.32 Crores (2012-2013 : ` 35.32 Crores) towards Roads & Culverts, Transformers &
Transmission lines, Railway Sidings & Rolling Stock, ownership of which does not vest with the Corporation. The
Corporation is having operational control over such assets. These assets are amortised at the rate of depreciation
specified in Schedule XIV of the Companies Act, 1956.
c.
Depreciation for the year includes reversal of excess depreciation on building in earlier years of NIL (2012-13: ` 60.85
crores) on account of re-classification of various assets under Factory Building, Non-Factory Building and Fences,
` (0.14) (2012-13: ` 14.36 crores) on Plant and Machinery on account of other adjustments and reversal of excess
depreciation charged in earlier years of NIL (2012-13: ` 3.94 crores) on Leasehold Land. These have been disclosed
under the head Depreciation in note # 28 as Prior period expenses/ (income).
d.
Cost of Right of Way is amortised over a period of 99 years which has resulted in amortization during the year of
` 0.47 crores; prior period NIL (2012-13: ` 1.77 crores including ` 1.33 crores pertaining to Prior Period).
e.
Includes following assets which are used for distribution of PDS Kerosene under Jana Kalyan Pariyojana against
which financial assistance is being provided by OIDB.
Description
2.
3.
1.
Leasehold property Land includes ` 24.97 Crores (2012-13: ` 25.37 Crores) which has not been amortised in view
of the fact that eventually the ownership will get transferred to the Company on expiry of the lease period. Net Block
` 0.78 Crores (2021-13: ` 1.15 Crores).
2.
Leasehold property Land includes land value ` 3.66 crores (2012-13: ` 4.03 Crores), which is in possession of the
company towards which formal lease deeds are yet to be executed. Net Block ` 3.66 Crores (2012-13: ` 4.03 Crores)
3.
Plant and Equipment ` 78.30 Crores (2012-13: ` 78.30 Crores) being MRPLs share of an asset jointly owned with
another Company. Net Block ` 3.80 crores (2012-13 ` 7.94 Crores).
HMEL
Details of Expenditure during construction period which are capitalized is given below:
` / Crores
2013-2014
2012-2013
1,33,464
Increase in Inventories
(16,345)
743
45
Gratuity expenses
Compensated absences
15
85
123
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
2013-2014
2012-2013
Other expenses
Consumption of chemicals, stores and spares
643
1,168
947
Buildings
31
Others
56
22
Outsourced services
216
Rent
52
Insurance
239
111
Freight outward
532
171
245
Miscellaneous expenses
196
Interest
8,751
233
180
Bank charges
170
260
2,575
Total (a)
1,34,812
1,14,426
(9,070)
Less:
Revenue from operations
Other income
-
154
164
Total (b)
1,05,674
Add: Net expenditure relating to previous year capitalised during the year
4,648
20
33,806
(33,806)
124
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
31.03.2014
13.
31.03.2013
CAPITAL WORK-IN-PROGRESS
Unallocated Capital Expenditure and Materials at Site
5,247.92
5,766.57
150.39
126.27
25.46
0.39
5,423.77
5,893.23
Establishment Charges
145.41
149.73
Borrowing Costs
586.11
518.18
Depreciation
0.02
0.99
731.52
668.92
6,155.29
6,562.15
1.36
1.36
0.03
1.76
1.39
3.12
561.76
561.76
0.01
0.01
3,500.00
125
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
31.03.2014
31.03.2013
Unquoted
Investment in Equity
Investments in Joint Venture
Petronet India Ltd.
[1,59,99,999 Equity Shares of ` 10 each fully paid up]
16.00
16.00
16.00
16.00
5.00
5.00
566.77
4,066.77
0.02
0.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.02
0.02
566.79
4,066.79
(Includes ` Nil Crores (2012-13 : ` Nil Crores) towards share of jointly controlled
entities)
* ` 2,750 Crores bonds pledged with Clearing Corporation of India Limited against CBLO Loan. Also refer note # 36
126
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
31.03.2014
31.03.2013
231.13
241.77
173.88
169.42
2.18
1.35
201.01
67.88
9.16
9.66
34.00
68.49
183.52
85.69
Capital Advances
Unsecured, Considered Good
Capital Advances
Other Loans and Advances
Advances Recoverable in Cash or in Kind or For Value to be
Received
Balances with Excise, Customs, Port Trust etc.
Other Deposits
Prepaid Expenses
16.02
11.44
568.44
407.18
3.73
13.91
62.48
237.81
12.00
12.00
111.43
164.20
163.08
1,661.75
1,601.11
0.06
0.07
0.06
0.07
1,661.75
1,601.11
168.35
132.20
60.88
25.48
229.23
157.68
MAT Credit
Share Application Money Pending Allotment
127
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
31.03.2014
17. CURRENT INVESTMENTS
Quoted
Investment in Government Securities
(i) 7.61% Oil Marketing Companies GOI Special Bonds, 2015
(ii) 6.90% Oil Marketing Companies GOI Special Bonds, 2026 (refer note # 36)*
(iii) 8.00% Oil Marketing Companies GOI Special Bonds, 2026
(iv) 8.20% Oil Marketing Companies GOI Special Bonds, 2024
(v) 6.35% Oil Marketing Companies GOI Special Bonds 2024
31.03.2013
5.07
2,938.79
22.26
115.25
2,042.67
5,124.04
5.10
23.64
24.02
123.49
2,184.61
2,360.86
(Includes ` Nil Crores (2012-13 : ` Nil Crores) towards share of jointly controlled
entities)
` / Crores
31.03.2014
31.03.2013
Market Value
Cost
Market Value
Cost
5,124.04
6,211.71
2,360.86
2,711.71
1087.68
350.85
` / Crores
31.03.2014
31.03.2013
18. INVENTORIES
(As per Inventory taken, valued and certified by the Management)
Raw Materials [including in transit ` 1,826.83 Crores (2012-13 : ` 1,265.38
Crores)]
Work - In - Progress
Finished Goods
Stock - In - Trade [including in transit ` 158.06 Crores (2012-13 : ` 182.44
Crores)]
Stores and Spares [including in transit ` 44.30 Crores (2012-13 : ` 13.36 Crores)]
Packages
128
7,840.09
5,062.82
2,474.34
8,960.97
4,958.74
2,229.42
8,249.68
4,635.48
648.18
13.16
24,895.48
541.22
14.79
20,733.41
59.93
147.09
147.09
59.93
0.01
43.45
132.47
132.47
43.46
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
31.03.2014
31.03.2013
Others
Secured Considered Good
Unsecured Considered Good
12.71
8.39
6,229.53
5,562.25
Considered Doubtful
2.04
0.83
2.04
0.83
6,242.24
5,570.64
6,302.17
5,614.10
69.92
161.05
0.01
0.01
0.48
0.41
12.68
11.70
1,781.78
553.74
1,864.87
726.91
1.03
1.75
4.92
5.11
0.06
308.08
130.88
314.03
137.80
2,178.90
864.71
113.21
111.87
11.10
4.74
56.74
56.79
66.96
49.66
533.69
518.62
74.00
36.00
129
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
31.03.2014
31.03.2013
Prepaid Expenses
Amounts Recoverable Under Subsidy Schemes
Advance Tax (Net of Provisions)
Other Receivables*
49.11
7,087.14
9.39
2,272.91
10,274.25
38.10
12,663.94
2.53
726.98
14,209.23
4.00
4.00
10,274.25
4.00
4.00
14,209.23
99.71
88.30
Unamortized Expenses
92.50
53.81
234.65
219.78
66.72
66.72
3.68
71.10
363.82
366.27
(Includes ` 246.34 Crores (2012-13 : ` 236.77 Crores) towards share of jointly controlled
entities)
* Includes : ` 637.19 Crores (2012-13 : ` 535.87 Crores) deposits made with LIC for
liability towards Leave Encashment, ` 1,411.75 crores (2012-13 : ` Nil) recoverable
from Government of India towards Direct Benefit Transfer for LPG consumers (DBTL)
22. OTHER CURRENT ASSETS
2013-2014
2012-2013
229,646.79
200,310.19
15,851.15
25,626.63
245,497.94
225,936.82
98.18
90.72
1.27
2.83
130
138.93
110.35
238.38
203.90
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
2013-2014
23C. OTHER INCOME
Interest Income on
Deposits
Staff Loans
Customers Accounts
Long Term Investments
Current investments (refer Note # 36)
Others
Dividend Income
Profit on sale of current investments
Profit on sale of fixed assets (net)
Share of Profit from Petroleum India International (AOP)
Gain on settlement of deferred sales tax loan (refer Note # 43)
Miscellaneous Income
2012-2013
82.06
23.66
109.83
416.59
143.26
775.40
52.18
5.74
0.01
0.56
394.56
203.63
1,432.08
27.68
19.20
138.62
241.50
207.70
106.60
741.30
43.95
0.61
278.66
1,064.52
2,474.34
8,960.97
4,958.74
16,394.05
2,229.42
8,249.68
4,635.48
15,114.58
2,229.42
8,249.68
4,635.48
15,114.58
(1,279.47)
1,973.28
7,338.91
5,637.22
14,949.41
(165.17)
1,669.98
126.29
150.21
250.65
2,197.13
1,753.49
140.18
459.85
266.65
2,620.17
131
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
` / Crores
26. FINANCE COSTS
Interest Expenses
Other Borrowing Costs
Applicable net (Gain)/Loss on Foreign Currency Transactions and Translation
2013-2014
2012-2013
1,372.19
121.02
899.73
2,392.94
1,492.99
81.22
199.06
1,773.27
299.70
2,876.99
2,688.92
188.07
39.26
716.40
206.41
73.79
176.14
427.14
2.36
222.56
195.99
15.89
529.34
23.95
0.18
736.83
0.01
15.88
17.57
113.51
131.20
505.89
50.98
730.72
5,419.77
190.58
2,709.84
2,037.57
672.27
38.54
644.29
180.06
52.39
126.26
184.89
7.08
186.64
163.45
14.90
458.70
21.82
0.60
33.58
(181.79)
(0.33)
49.45
12.93
102.14
92.87
1,199.83
43.90
1,468.04
5,763.09
0.68
0.46
0.15
1.29
0.66
0.40
0.10
1.16
132
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
2013-2014
2012-2013
5.02
(6.49)
7.93
(0.21)
(0.94)
65.16
0.25
2.01
72.73
(49.10)
(64.82)
0.53
1.28
(112.11)
(Includes ` 1.83 Crores (2012-13 : ` - 0.81 Crores) towards share of jointly controlled
entities)
29. During the current financial year 2013-14, ONGC and GAIL offered discount on prices of crude, PDS SKO and Domestic LPG
purchased from them. Accordingly, the Corporation has accounted the discount as under :
(a) ` 1,815.55 crores (2012-13: ` 1,587.82 Crores) discount received on purchase of PDS SKO and Domestic LPG from
ONGC and GAIL has been adjusted against Purchases of Stock-in-Trade.
(b) ` 14,955.22 crores (2012-13: ` 9,600.71 Crores) discount received on Crude Oil purchased from ONGC has been
adjusted against purchase cost of Crude Oil.
30. In principle approval of Government of India for Budgetary Support amounting to ` 15,215.45 crores (2012-13: ` 24,825.28
crores), has been received and the same have been accounted under Recovery under Subsidy Schemes.
31. (a) Current Tax includes MAT Credit availment of ` 10.68 Crores ` (2012-13: Nil).
(b) The recognition of MAT Credit Entitlements of ` 568.44 Crore as at March 31, 2014 (` 406.85 Crores as at March 31,
2013) is on the basis of convincing evidence that the Corporation will be able to avail the credit during the period
specified in section 115JAA of the Act.
(c) Provision for tax for earlier years (written back) / provided of ` 19.82 Crores (2012 13: written back ` 60.62 Crores)
represents additional provision of ` 192.33 Crores (2012 13: ` 72.12 Crores) towards deferred tax, recognition of MAT
Credit Entitlements of ` (169.99 Crores) (2012 13: ` (24.89 crores)) and reversal of excess provision of ` (2.53 Crores)
(2012 13: ` (107.85 Crores)).
(d) Also refer note 43 (a) (ii).
32. In accordance with the option as per AS 11 (notified under the Companys Accounting Standards Rules, 2006) exercised in
the year 2008 09, the Corporation has adjusted the exchange differences arising on long term foreign currency monetary
items to the cost of assets and depreciated over the balance life of the assets. The Corporation has continued to exercise
the option during the year 2013-14 as per Ministry of Corporate Affairs Notification.
33. During the previous financial year, the premium on forward exchange contracts entered into to hedge the liability towards
Syndicated Loans from Foreign Banks (repayable in foreign currency) had been considered as borrowing costs as per AS
16. Accordingly, an amount of ` 64.82 crores had been capitalized and an amount of ` 55.90 Crores (net of depreciation)
had been disclosed as Prior Period Expenses/ (Income).
During the current financial year, based on the opinion of Expert Advisory Committee of ICAI, the Corporation has
decapitalized the said premium of ` 64.82 Crores and an amount of ` 52.42 Crores (net of depreciation) has been disclosed
as Prior Period Expenses/ (Income).
34. During the financial year 2013-14, Reserve Bank of India had introduced forex swap window for meeting the daily US dollar
requirement of public sector oil marketing companies. The net realized gain (including premium paid/ received) of ` 147.74
crores on the RBI Swap transactions and the forward contracts taken to hedge the same, which have matured during the
financial year 2013-14 have been recognized and accounted for in the books.
The un-matured RBI Swap Transactions (which are in the nature of firm commitments) are mark to market at the year end
and resultant unrealized gain of ` 192.73 Crores is not recognized on ground of prudence. The forward contracts taken
133
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
to hedge the un-matured RBI swap transactions and open at year end are also mark to market and the resultant loss of
` 168.33 crores is recognized. This treatment is in line with the March 29, 2008 announcement of Institute of Chartered
Accountants of India.
35. During the year, there was an instance of fire in Cooling Water Tower Area in Visakh Refinery. The Company has incurred
an expenses of ` 31.38 Crores towards reconstruction / compensation. Insurance claims are under process and will be
recognized on acceptance.
36. During the current year, investments in 6.90% Oil Marketing Companies GOI Special Bonds 2026 amounting to ` 3,500.00
crores have been reclassified from Long Term Investments to Current Investments to improve flexibility in liquidity.
Consequently, an amount of ` 583.18 crores has been provided in the books of accounts towards diminution in the value for
this investment.
37. (a) Inter-Oil company transactions are reconciled on a continuous basis. However, year end balances are subject to
confirmation/reconciliation.
(b) Customers accounts are reconciled on an ongoing basis and such reconciliation is not likely to have a material impact
on the outstanding or classification of the accounts.
38. EXCEPTIONAL ITEMS EXPENSES / (INCOME)
(Figures for joint ventures are reported at total amounts and not on proportionate basis)
The exceptional items (income) for the year of ` 23.40 crores mainly includes as under,
(a) HBL
A provision has been made for difference in the physical verification and book value which shall be appropriately
accounted after due approval.
Sugar (bags)
Books
Physical
Variation (Qty.)
Amount (`)
4,55,246
4,46,791
(8,455)
(1,54,74,895)
Molasses-Sugar (MT)
13,928
14,035
107
2,00,199
Molasses-Ethanol (MT)
17,323
20,324
3,001
56,27,516
Ethanol (Ltrs.)
52,79,373
52,79,325
(48)
(1,848)
10,69,164
10,69,164
39,94,693
(b) MRPL
I.
The Company has recognised ` 11.19 crores as income under exceptional items, arising out of changed pricing
terms for curde oil supply, pursuant to signing of Crude Oil Sale Agreement (COSA) with ONGC on 31st July 2013
effective from 1st April, 2010.
II.
Pursuant to the order of Tariff Authority for major ports (TAMP) no TAMP/22/2012-NMPT dated 1st April, 2013 notfied
in Gazette of India dated 12th April 2013 fixing the wharfage rates for the years 2002-03 to 2008-09, MRPL had
recognised ` 44.45 crores as receivable from NMPT and the same was considered as income under Exceptional
item in the previous year.
(b) HMEL
During the previous year, the Company reassessed the date when the plant began production of commercially
feasible quantities of finished goods to 30th December 2012 as against its initial assessment of 23th February 2012.
Consequentially, there was an exceptional income of ` 54.73 Crores, relating to the period 23th February 2012 to
31st March 2012, in the previous Year representing (i) net expenditure of ` 464.8 Crores incurred towards test run
activities, and (ii) reversal of depreciation charge of ` 82.50 Crores; as the same had been charged off to the statement
of profit and loss in the financial year 2011-12.
134
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
39. RELATED PARTY DISCLOSURE
(a) Names and relationship with related parties
Joint venture companies
Mittal Energy Investments Pte Ltd.
Oil and Natural Gas Corporation Ltd.
ONGC Mangalore Petrochemicals Ltd.
Shell MRPL Aviation Fuels & Services Pvt. Ltd.
Mangalam Retail Services Ltd.
Mangalore Special Economic Zone
Total Gas Power India (TGPI) France
Total Project India Pvt. Ltd.
Hydrocarbon Development Pvt. Co. Ltd.
Jai Prakash Associates Ltd.
Valdel Oil & Gas Pvt. Ltd.
Prize Petroleum International Pte. Ltd. Singapore
GAIL (India) Ltd.
COLASIE SA, France
COLAS SA, France
SP Ports Pvt. Ltd.
Key management personnel of the group companies
Smt. Nishi Vasudeva, Chairman and Managing Director (w.e.f 1st Mar, 2014).
Shri S. Roy Choudhury, Chairman and Managing Director (up to 28th Feb, 2014).
Shri B. Mukherjee, Director - Finance (up to 31st May, 2013).
Shri K. V. Rao, Director - Finance (w.e.f. 1st Jun, 2013).
Shri K. Murali, Director - Refineries (up to 30th Jun, 2013).
Shri B K Namdeo, Director - Refineries (w.e.f. 1st Jul, 2013).
Smt. Nishi Vasudeva, Director - Marketing (up to 28th Feb, 2014).
Shri Pushp Kumar Joshi, Director - Human Resources
Shri. P. Dwarkanath, CEO & Director
Shri. Pardeep Madan, Managing Director
Shri. M. Ananth Krishnan, Director - Commercial
Shri Anil Khurana, Managing Director
Shri. Prabh Das, Managing Director & CEO
Shri P. P. Upadhya, Managing Director
Shri Vishnu Agrawal, Director (Finance)
Shri V.G.Joshi, Director (Refinery)
Shri. N. K. Agarwal, Managing Director
Shri. S.Sreenivasulu, Director - Commercial
Shri. M Somasundar, Manager
Shri Vinod Nehete (CEO)
Shri. Mukesh Kumar Surana, Manager & CEO
Shri Tapan Ray, IAS, Chairman
Shri Ravindra Agrawal, Director
Shri N. Bosebabu, Director
Shri Tejbir Singh Sawhney, Manager
135
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
(b) Details of transactions with related parties
Transactions with joint venture companies
Purchases
Investment in Equity / Share Application Money Received
Services Rendered / (Received)
` / Crores
2013-14
109.83
472.18
1.20
2012-13
92.63
497.27
0.83
Outstanding balances as on
Share Application Money Pending Allotment
Trade Payables
31.03.2014
9.96
31.03.2013
472.20
11.58
2013-14
3.64
0.15
0.33
1.58
5.70
2012-13
3.02
0.11
0.18
1.28
4.59
136
2013-14
2012-13
487.93
607.30
81.65
81.65
56.94
56.94
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
(iii) Other money for which the Group is contingently liable
Disputed demands / claims involving appeals /
representations filed by the Group
Income Tax
Sales Tax / Octroi
Excise / Customs / Service Tax
Land Rentals & Licence Fees
Others
Disputed demands / claims involving appeals filed against the Group
Income Tax
Sales Tax / Octroi
Excise / Customs
Employee Benefits / Demands (to the extent quantifiable)
Enhancement of Compensation against land acquired
Service Tax
Local Levies
Others
(a)
2013-14
2012-13
124.05
4,334.18
448.81
224.46
134.65
5,266.15
119.90
4,260.62
404.65
98.90
125.99
5,010.06
12.38
10.75
50.53
367.34
54.47
9.95
0.02
425.02
930.46
6,766.19
10.30
27.62
183.44
27.00
0.02
287.03
535.41
6,209.71
2,562.78
3,399.20
3.73
2,566.51
615.73
4,014.93
9,332.70
10,224.64
137
138
Capital expenditure
Depreciation (including prior period)
Non cash expenses excluding depreciation
Segment liabilities
Unallocated corporate liabilities
Minority interest
Total liabilities
Other Information :
Segment assets
Unallocated corporate assets
Total assets
Result :
Segment results
Less: Unallocated expenses (net of unallocated
income)
Operating profit
Add / (less) :
Finance costs
Loss on sale of current investments and provision
for diminution
Dividend income & share of profit from AOP
Interest income
Prior period (expenses) / income
Profit before tax
Less: Tax expenses (including deferred tax)
Profit after tax but before share of minority interest
Less : Share of minority in profit / (loss)
Profit / (loss) for the period for the group
Revenue :
External revenue
Inter-segment revenue
Total revenue
Particulars
5,922.00
3,010.48
51,245.22
59.64
-
982.58
199.86
(186.23)
3,885.62
89,538.56
(186.23)
-
1.19
7.40
8.59
3,885.62
-
234,762.19
234,762.19
(0.37)
(7.40)
(7.40)
2013-14
Downstream Exploration Eliminations
Petroleum
&
Production
5,981.64
3,010.48
770.47
52,227.80
30,488.43
3.65
82,719.88
89,738.05
6,980.56
96,718.61
7,290.42
2,315.56
56,115.36
84,375.94
17.16
-
668.67
69.21
(2.65)
1,608.81
1,608.81
-
7,307.58
2,315.56
98.24
56,784.03
22,131.72
1.48
78,917.23
84,442.50
7,833.30
92,275.80
44.56
741.30
112.11
881.72
(381.23)
500.49
(0.81)
501.30
- 216,423.75
(6.21)
(6.21) 216,423.75
52.74
775.40
(72.73)
1,325.03
(245.41)
1,079.62
(0.75)
1,080.37
(62.80)
(62.80)
-
1.00
6.21
7.21
Total
(1,773.27)
148.21
1,671.61
1,671.61
-
216,422.75
216,422.75
2012-13
Downstream Exploration Eliminations
Petroleum
&
Production
` / Crores
(2,392.94)
(736.83)
3,699.39
3,699.39
-
234,763.38
234,763.38
Total
Information regarding Primary Segment Reporting as per AS-17 for the year ended 31st March, 2014.
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
Notes:
1.
b)
Segments have been identified taking into account the nature of activities and the nature of risks and returns.
2.
b)
c)
d)
Other income (excluding interest income, dividend income and investment income).
3.
4.
43. In respect of certain Subsidiaries and Joint Venture Companies, the following notes to accounts are disclosed.
(figures for joint ventures are reported at total amounts and not on proportionate basis)
(a) HPCL-Mittal Energy Ltd. (HMEL)
(i)
As per the provisions of the Deed of Assurance signed by the Company with the Government of Punjab read together
with the notification dated 22 November 2011 under Punjab General SalesTax (Deferment & Exemption) Rules, 1991,
the Company is allowed to defer the payment of its Central Sales Tax (CST) liability for a period of 15 years from the date
of production and the same is repayable in 30 half yearly instalments from the 16th year onwards without any interest.
Punjab VAT Act, 2005 vide notification no. S.O. 21/P.O.5/2005/5, 92/2005 dated 6 April 2005, further prescribes conditions
for availing deferment and exemption which inter-alia provides that any unit availing benefit of deferment, can opt for
payment of amount of deferred CST liability on a net present value basis computed at an interest of 11% p.a., before the date
of filing of return. In view of the said provisions, the Company has decided to settle the entire CST liability as at 31 March 2014,
by 30 June 2014. Accordingly, the amount of CST liability as at 31 March 2014, as recorded in these consolidated financial
statements, represents the estimated amount required on 30 June 2014 to settle the same. Consequentially, an amount of
` 806.2 Crores has been credited to the Statement of Profit and Loss, being the difference between the gross amount
of CST liability as at the year end and the estimated amount required for its settlement on 30 June 2014.
(ii) HPCL-Mittal Energy Limited (HMEL) has entered into a fifteen year product off take agreement, starting from November
2012, with Hindustan Petroleum Corporation Limited (HPCL) according to which HPCL is required to purchase most
of the goods produced by the Company. In view of the said contract, the management believes, to the extent HPCL is
required to purchase goods from the HMEL, there exists virtual certainty that it will generate sufficient taxable profits to
set-off the unabsorbed depreciation and carry forward losses and other timing differences and has hence recognised
deferred tax assets on the same. Additionally, there are some more timing differences on account of carry forward
losses on which HMEL would have had deferred tax assets of ` 29.4 Crores (Previous year ` 264.9 Crores) which have
not been recognised as HMEL is only reasonably certain towards its realisation. Deferred Tax Recognised by HMEL is
` 1348 Crores.
(iii) HPCL-Mittal Pipelines Limited (HMPL) has set up a Single Point Mooring (SPM) and a crude receipt and storage facility
at Mundra port, Gujarat, besides a 1,017 kilometers cross country pipeline for transportation of crude oil from Mundra to
Bathinda, Punjab. HMPL believes that with respect to the operations carried out at Mundra, a Special Economic Zone,
it shall be eligible for a tax holiday for a period of ten consecutive years in a block of fifteen years commencing from
139
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
the financial year 2011-12, in accordance with the provisions of section 80-lA (2) of the Income Tax Act, 1961. HMPL
intends to claim the said tax holiday benefit from financial year beginning on 1st April 2016 onwards. Accordingly,
HMPL based on its current business plans, has estimated the timing differences, relating to the port business, which are
likely to reverse during the tax holiday period and has not created any deferred tax assets or liabilities on such timing
differences.
(b) PPCL
The company through its Singapore based subsidiary company is in the process of acquiring a producing field and a
discovered field in Australia (Australian assets) valuing AUD 85 million. The effective date of the Australian assets under
acquisition is 1st July, 2013, however, pending of deal completion, the financial impact of the said assets has not been
considered in the unaudited financial statements of the Singapore based subsidiary company, hence not included in
consolidated Financial Statements as on 31st March, 2014. The subsidiary company has made initial deposit payment of
14.80 million US dollar (` 88,67,66,067) towards acquisition of said assets as per Sale Purchase Agreement.
(c) HBL
Penalty Recovered & Kept as Retention Money: An amount of ` 15.14 Crores was recovered through encashment of Bank
Guarantees from one of the EPCC contractors. Out of this ` 11.97 Crores istowards penalty for shortfall in performance and
` 3.17 is towards additional retention against defective supplies. The contractor had invoked the Arbitration Clause and the
Arbitrator has since been appointed. Hence this amount has been accounted as retention money in Other Current Liabilities.
Arbitration proceedings are in progress and depending upon the outcome of the arbitration proceedings, necessary
accounting would be done.
44. Details of derivative instruments and unhedged foreign currency exposure for the group is given as under,
(Figures for joint ventures are reported at total amounts and not on proportionate basis)
a.
HPCL
The Corporation has, as at the Balance Sheet date, entered into foreign exchange hedging contracts amounting to USD
138.85 crores (2012-13 : USD 246.90 crores) to hedge its foreign currency exposure towards loans/ export earnings.
The Corporation normally does not hedge the foreign currency exposure in respect of payment for crude/product which
is due for payment generally within 30 to 90 days. Exposures not hedged as of Balance Sheet date amounted to USD
106.27 crores (2012-13: USD 103.70 crores) towards purchase of Crude & Products and USD 305.15 crores (2012-13:
USD 242.60 crores) in respect of loans taken. As at Balance Sheet date, Corporation has interest rate swap contracts
for a value of USD 20 Crores (2012-13: USD 16 crores) to cover its floating interest rate exposure to fixed interest rate.
Forward contract of USD 95.30 crores are outstanding as at the year end to hedge the RBI swap transactions referred
in note # 34.
b.
MRPL
Exposures not hedged by Derivative instruments or otherwise (net):
` in million
st
st
As on 31 March, 2014
Particulars
Foreign
Currency
Imports USD
As on 31 March, 2013
Equivalent
Rupees
Foreign
Currency
Equivalent
Rupees
3,325.34
1,99,254.37
1,764.62
95,836.51
Creditors Euro
Nil
Nil
Nil
Nil
Creditors JPY
Nil
Nil
Nil
Nil
Creditors USD
Nil
Nil
0.01
0.54
Exports USD
341.33
20,452.49
312.30
16,957.89
Loans USD
650.00
38,948.00
520.00
28,241.20
140
Notes to the Consolidated Financial Statements for the year ended 31st March, 2014
c.
HMEL
HMEL has taken forward contracts to hedge its foreign currency exposure. The aggregate amount of forward contracts
outstanding as at balance sheet date comprises of:
Particulars
Currency
USD
17 million
22 million
USD
444 million
The Group has taken INR buy / USD sell principal only swap contract and to convert its INR loan liability of ` Nil
(previous year ` 4,509 million) to USD Nil (previous year USD 80 million).
The Group has taken USD buy / INR sell option to hedge its foreign currency outflow exposure. The total amount of
option outstanding on 31st March 2014 is USD 60 million (previous year Nil).
Particulars of unhedged foreign currency exposures as at the balance sheet date.
` / Crores
st
Particulars
st
31 March 2014
31 March 2013
64,327
36,782
80,232
76,479
26,887
44,975
1,603
176
Trade receivable
Capital advances
* Includes loans taken in JPY equivalent to ` 1,019 million (previous year: ` 1,195 million) which has been hedged into
USD.
45. Previous years figures are reclassified / regrouped wherever necessary.
141
Particulars
CREDA-HPCL
Biofuels Ltd.
Prize Petroleum
Company Ltd.
HPCL Rajasthan
Refinery Ltd.
2013-14
2012-13
2013-14
2012-13
2013-14
2012-13
2013-14
2012-13
a.
Share Capital
21.76
10.58
625.17
205.52
120.00
72.50
0.05
b.
(5.77)
(4.90)
(316.57)
(200.50)
(56.11)
(35.16)
(2.01)
c.
Total Assets
18.69
15.60
843.26
819.17
159.49
28.82
20.34
2.70
9.92
534.66
814.15
95.60
(8.52)
22.30
0.02
139.40
95.48
1.19
1.00
(0.87)
(3.10)
(115.88)
(147.03)
(11.61)
(1.14)
(2.01)
0.00
0.00
9.24
0.12
(0.87)
(3.10)
(115.88)
(147.03)
(20.89)
(1.26)
(2.01)
d.
Total Liabilities
e.
Details of Investments
(except in case of
investment in the
subsidiaries)
f.
Turnover
g.
h.
i.
j.
Proposed Dividend
142
21-30
1775
1590
185
26
31-40
1271
932
339
35
41-50
3509
1383
2126
47
Above 50
4303
1385
2918
55
Total
10858
5290
5568
Employees compensation represented by direct & indirect benefits earned by them on cost to company basis.
2.
Earnings up to the age of superannuation are considered on incremental basis taking the Corporations policies into
consideration.
3.
2012-13
16,791
8,496
25,287
20,846
25,912
10,860
15,861
73,299
25,287
22,549
10,627
16,118
74,581
Employee Cost
Net Profit Before Tax (PBT)
2,030
2,674
2,526
1,361
Ratios (in %)
Employee Cost to Human Resource
Human Resource to Total Resource
PBT to Human Resource
9.74
28.44
12.83
9.99
33.91
5.38
143
Joint Ventures
Sr.
No.
1.
Date of
Incorportion
13.12.2000
2.
17.07.1995
3.
South
Asia
LPG
Company Pvt. Ltd.
16.11.1999
4.
07.03.1988
5.
26.05.1997
6.
31.07.1998
7.
22.08.2003
8.
07.06.2006
9.
13.10.2011
10.
13.10.2011
11.
15.10.2013
Shareholding as on
31st March, 2014
HPCL
48.94%
Mittal
48.94%
Investments
S.A.R.L.
Indian Financial
2.12%
Institutions
HPCL
50.00%
COLASIE
50.00%
HPCL
50.00%
TOTAL
50.00%
ONGC
HPCL
Others
HPCL
Financial /
Strategic
Investors
Other PSUs
HPCL
71.62%
16.95%
11.43%
16.00%
50.00%
Petronet India
Ltd.
ONGC
Financial /
Strategic
Investors
HPCL
GAIL
Strategic
Investors
HPCL
GAIL
Financial
Institutions
HPCL
GSPL
IOCL
BPCL
HPCL
GSPL
IOCL
BPCL
HPCL
SP Port Private
Limited
144
34.00%
28.77%
7.89%
Nature of Operations
Refining of crude oil and manufacturing of
petroleum products.
28.77%
34.57%
25.00%
25.00%
50.00%
25.00%
25.00%
50.00%
11.00%
52.00%
26.00%
11.00%
11.00%
52.00%
26.00%
11.00%
50.00%
50.00%
Corporate Governance
HPCL believes in good Corporate Governance practices, ethics, fairness, professionalism and accountability to enhance
stakeholders value and interest on sustainable basis and to build an environment of trust and confidence of its stakeholders. At
HPCL, Corporate Governance is to follow a systematic processes, policies, rules, regulations and laws by which companies are
directed, controlled and administered by the management in meeting the stakeholders aspirations and societal expectations.
HPCL lays special emphasis on conducting its affairs within the framework of policies, internal and external regulations, in a
transparent manner. Being a Government Company its activities are subject to review by several external authorities like the
Comptroller & Auditor General of India (CAG), the Central Vigilance Commission (CVC), and Parliamentary Committees etc.
Keeping in view the above philosophy, the Corporate Governance at HPCL is based on the following main key principles &
practices:
!"
<">"
?
"
\
^
"
"
In compliance with Clause 49 of the Listing Agreement executed with Stock Exchanges as mandated by the Securities and
Exchange Board of India (SEBI), guidelines on statutory disclosure as well as notification on Corporate Governance for Public
_
`
"
" `
{`|
\
} "
1.
BOARD OF DIRECTORS:
1.1 Composition of Board of Directors
` "
"\
{?
|
04
02
05
28.05.2013
18.07.2013
12.08.2013
30.10.2013
12.11.2013
07.01.2014
11.02.2014
24.02.2014
26.03.2014
145
Academic
^
Shri Pushp
Kumar Joshi
!\
B.A., LLB, PG
{>|
Jamshedpur
=9!8&:8(!(
}
Smt. Nishi
{
|
Vasudeva *
Name of the
Director
08
10
10
No. of
Board
Meetings
Held
08
10
10
No. of
Attendance Details of Directorship in
Board
at the last other Companies
Meetings AGM
Attended
1.3 Particulars of Directors including their attendance at the Board / Shareholders Meeting
\
"
\
_}
Co. Pvt. Limited, HPCL Shapoorji Energy
Limited, Hindustan Colas Limited.
"
\
Hindustan Colas Limited
"
\
Petroleum Co. Limited, HPCL Biofuel
Limited
"
\
"
\
"
\
Corporate Governance
146
147
02
NON-EXECUTIVE DIRECTORS
(a) PART TIME (EX-OFFICIO) DIRECTORS
_\"
IAS, Post
10
Graduate
in Physics,
Computer
Science
Economics,
Sociology
>
Economics
?
(Chemical
Engg.)
_ !\
Shri B.
"
_"
****
09
`{ |
Shri S.Roy
Choudhury ***
02
08
`{ |
? {?
Powai)
Shri B.K.
Namdeo **
07
01
02
09
08
No
N.A.
N.A.
"
\
\`
\!"
"
Co. Limited, HPCL Biofuels Limited, HPCL
`
"
\
Petroleum Co. Limited.
\
"
\
\
"
"
\
Limited, South Asia LPG Co.Pvt.Limited
"
\
Petroleum Co. Limited
"
\
\
Energy Limited, Hindustan Colas Limited,
\
\`
HPCL Biofuels Limited
"
\
\
`
"
\
\`\
Petrochemicals Limited
!"
"
\
"
\
`
Co. Limited.
\`\!"
Limited
5. HPCL Rajasthan Refinery
Limited
6. HPCL Biofuels Limited
Corporate Governance
148
10
_ {
Chemistry),
_
{
Chemistry),
Gujarat
University,
_
{
University),
Gujarat
University
}
Shah
10
10
_ {|
}"
?
}
Shri A.C.
IAS,
08
B.A.
(Economics)
Shri L.N. Gupta _
02
{` |
******
(Birmingham
University)
(b) PART-TIME DIRECTORS (NON-OFFICIO)
Shri G.K. Pillai
IAS,
10
_
No
08
10
07
No
No
N.A.
01
09
No
06
\
"
\
"
"
!"?"
\
?_"
"
\
2. Alcock Ashdown Gujarat
and Special Economic Zone Limited,
Ltd.
Hindustan Petroleum Corpn. Limited,
Indian Reister of Shipping.
\
"
\
5. Vidya Vardhini Education
\
!"
Logistic Limited
6. Adani Ports and Special
_^}
Economic Zone Limited
\
Corporate Governance
149
"
\
__ " "
\
""
>
__
{! |
{|
>
respectively.
No
No
05
07
07
06
06
Shri S.K.
B.E. (Hons),
Roongta******** PostGraduation
in Business
?
Rohit Khanna
\
!\
*******
Shri Anil
IAS (Retd),
LLB, B.Sc.
(Hons)
Corporate Governance
Corporate Governance
?A (=8:=8(!(>
Smt. Nishi Vasudeva :
_
"
\
"
"
\
<
{
|\_
}"
"
"
_
_
"
"
policies and strategies while leading Human Resources practices that are employee oriented and aim at building high
performance culture. He is also responsible for providing key outlook to the management on strategic HR plans, employee
development, labour relations apart from others.
Spearheading HR practices with strong business focus and contemporary approaches, few hallmarks of his innovation
"
"
\"
?
\
"
"
? >
"
` {|
"
_
}\
>"
"
Shri K.V. Rao (From 01.06.2013)
!
"
{! |
<` "
\
! \
"
\
"
{\| <
"
\
\
! ?"
"
>!
<
""
"
interest rates as compared with the Industry.
He has various academic distinctions to his credit, which includes being a rank holder in CA and B.Com examination. He
has also been actively participating in various seminars and workshops, both at national and international levels.
Shri B.K. Namdeo (From 01.07.2013)
\
"
<
?>_"_` "
<
for managing the crude oil procurement & product evacuation for HPCLs two coastal refineries with a combined refining
"
?
_\
"
<
Refinery planning and scheduling and related commercial activities.
150
Corporate Governance
"
_
?
{` |
\
"
_"\
"<"
<
\
"<"
_
"_ \<"
_ _
"
_
!
" _
\
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}
_
"
_
_
_" ?
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{
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""
period he actively participated in negotiations for comprehensive economic co-operation agreements with Singapore,
ASEAN, Japan, South Korea. He played key role in the enactment of the SEZ Act 2005 and was Chairman of the Board of
approvals for SEZ during 2005 to 2009.
He has represented State and Central Government delegations to USA, EU, Argentina, Japan, Canada etc., He was
appointed as Union Home Secretary in June 2009 and retired from Government service in June 2011.
Shri A.C. Mahajan
151
Corporate Governance
_
"" _
in India and abroad, he superannuated in August 2010.
"
?"
}
\\
}
<\` "
Japan branch. He had also worked in Kenya for five years as in charge of Nairobi (Kenya) branch.
<
` "
\
\
"
\
Presently besides being on the Board of various companies including Hindustan Petroleum Corporation Limited, Shri
\
}\" \_
{\_|
watch dog of banking industry which is tasked with duty of ensuring that Banks provide to the customers services in
transparent manner.
Dr. G. Raghuram
"
"
"
? {?|
<
_
"
"
{|
"
"
and transportation systems, and supply chain and logistics management. His research, consultancy, case studies and
"
" "<
"
"
"
<
?"
_
"
""
_\"?`_
"
"
""<
_
{|!<
_
{_|\
"
?
{\?|
"
_
\
Dr. Gitesh K. Shah
}
_
\
}"
>\
_
_ \
?<<_
\
"_<
\
_
\
\
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_
\
{\_ \\
!_\|
"
_<\
\
"
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?
"
\
Accountants of India.
}" > \ " <
152
Corporate Governance
`
\"
"
companies.
(
6!
6; EHBEEB?A<
"(
) ; BLB?EB?A<
2.
REMUNERATION OF DIRECTORS:
Corporate Governance
?
_
!
_"\
?
"
<
}
3.
BOARD SUB-COMMITTEES:
A.
Audit Committee:
?" \
` "
` "
<
1.
_\
2.
}"
4.
5.
_
6.
7.
_"
?
?
}"
<"
"
\
"
_\
"
\
_"
\
""
"
"
\
?
"
\
"
"
9
Review and monitor the auditors independence and performance and effectiveness of audit process.
154
Corporate Governance
9
""
""
?\
<
"
!
Accounts were adopted by the Board.
" \
11.02.2014
% of attendance
_\
07
07
100%
}"
01
01
100%
01
01
100%
05
05
100%
_
06
06
100%
06
50%
_"
02
02
100%
B.
Committee on HR Policies/Remuneration :
1.
2.
}"
4.
_
"
of three years.
_
"
\
"
<
% of attendance
01
01
100%
}"
01
01
100%
01
01
100%
_
01
_
"
?
!"
}
\
the need for a separate Remuneration Committee in view of the fact that the Company is a Government Company as
_
{|
\
155
Corporate Governance
?
"
!"
<
?
"
?
!"
" < "
}
" ""
contributions as per the rules of the Company.
Salaries &
Allowances
Contribution
to Provident
Fund
Contribution
to Gratuity
Other
*
Total
Nishi Vasudeva
{\
>
|
1949545
5407052
2862255
K.V. Rao
{
! |
181871
69288
2894625
5409264
{
Refineries)
2466405
60542
1108294
S. Roy Choudhury
{\
>
|
{?|
225575
1000000
2962471
7875900
"{
! |
{?|
1429098
1000000
"
{
|
{?|
1000000
2518765
` "
>?
_\
\
\
?\
1.
_\
2.
}"
?
4.
_"
?
_"
\
""
"
^} \
? \
<
"
^ } _
^
interest.
156
Corporate Governance
8
#
!
) )EB?J?A>
% of attendance
_\
02
02
100%
}"
02
01
50%
01
01
100%
_"
01
01
100%
D.
Investment Committee:
<
1.
Shri G.K.Pillai *
2.
} _
Shri K.V.Rao
4.
_
?
` "
\
10.02.2014
E.
"` "
??
{
|
?\
1.
2.
_\
}"
4.
} _
??
!(0!
) )EB?J?A
157
Corporate Governance
A 88#==(2Q&(EB?JEB?A>
Shri G.K.
Pillai
Shri A.C.
Mahajan
Dr. G.
Raghuram
Dr. Gitesh
K. Shah
Shri Rohit
Khanna
Shri Anil
Razdan
Shri S.K.
Roongta
160000
180000
140000
200000
120000
100000
60000
105000
15000
15000
90000
45000
HR / Remuneration
Committee
15000
15000
15000
Investor Grievance
Committee
15000
Audit Committee
Investment Committee
15000
15000
\_>_\
45000
45000
45000
215000
275000
205000
120000
P 8(!(X2&(2:8#>
\ \
6.
?
{?|
<
\\
`
<<<"
"
"
"
"
"
<
"
\
"?
@ 8#(8Q&!>
?\
"
{|
<
<
?
"?<
\
effective September 01, 2007 for contracts above ` ?
<
"
to be signed by the Company and by the vendor(s) / bidder(s).
8.
?_
\
_
\
_
"
<?\
\
<"
""
\
?
<
"
_<
\
"
_" "
"
\
\
"
"
_
9001:2008 Standard of services to shareholders.
_
>?
"
_?
"
?
<
_ ? \
\ " ? \
"
<
"
"}
^
<
\
its performance are shared with the Shareholders.
158
Corporate Governance
?\
"
_"
/ representations are resolved at the earliest.
?\
_
\
\
"
_
` ?
"
"
"` "<?!
\
^<
<<<"
"
"}
Q
:
Date
Time
\"
"
"
11.00 a.m.
2011-12
\"
"
"
18.09.2012
11.00 a.m.
2010-11
\"
"
"
22.09.2011
11.00 a.m.
"
"
! _ "
<<
\
"
<
"_
{|{ |{|{|
\
<
"\
{
|"
?
"
?<
"
i.
? "
""
"
"
\
" <
?"
""<`
?
?
! ``
?
<
_
"`<
"
ii.
Website
? \
^ \
www.hindustanpetroleum.com provides separate sections for investors where
relevant information for shareholders is available. It also provides comprehensive information on HPCLs Portfolio of
businesses, including sustainability initiatives comprising CSR activities, HSE performance etc.
"
! "
<
?
">
"
159
Corporate Governance
v.
?
_
"
\"
"
<
\
}
"
`"""
`"!"
`
12.3
*
1!
>
12.5 (a) : )
1
)
J?BJEB?A >
?
_
`
`
!
\
G Block, Bandra-Kurla Complex,
Bandra East,
"
?
_
`
?<
_
"
12.6 ;7< : ) >
Listing fees for financial year 2014-15 have been paid to the Stock Exchanges in April, 2014
500104
_`
`?
160
Corporate Governance
12.8 Stock Market Data :
2!:2&((8!
(In `)
BSE
NSE
Q&(
HIGH
:5
HIGH
:5
158.45
158.00
260.25
2011-12
419.50
2010-11
555.45
555.70
292.00
2009-10
425.00
242.50
425.90
242.65
2!:2&(
`
BSE SENSEX
8=Q
6704.20
285.10
5682.55
17404.20
5295.55
19445.22
17527.77
5249.10
Month
High (`)
:
F;`)
Close (`)
Volume
(No.)
Month
High (`)
:
F;`)
Close (`)
Volume
(No.)
279.00
1948459
279.00
14199579
280.50
2208761
280.80
281.70
16261722
"
287.50
240.00
1561196
"
286.40
"
261.75
190.80
211.65
2814442
"
261.80
190.65
211.65
"
215.00
158.45
167.55
"
215.00
158.00
167.75
_
210.80
161.00
191.65
5591748
_
210.55
161.50
192.15
201.45
199.00
198.60
214.95
25957628
245.05
209.00
2196768
245.20
208.60
Jan-14
214.45
244.45
2184414
Jan-14
245.65
214.50
244.25
!
266.00
264.45
!
265.90
264.75
260.90
260.60
40095967
161
Corporate Governance
(2&(&(:&&&>
EB?J?A
Per Share Data
EPS
CEPS
Book Value
Share Related Data
"
Price to Earning *
Price to Cash Earning*
Price to Book Value
closing price (BSE)
Unit
`
`
`
`
Unit
%
"
"
"
2012-13
2011-12
2010-11
EBBL?B
51.20
15.50
26.72
96.86
8.50
26.92
77.70
8.50
45.45
98.54
14.00
78.86
12.00
6.05
2.60
0.70
10.67
2.94
0.70
285.10
11.27
0.78
7.85
0.96
8.27
4.04
?EL
12.10
Share transfers are registered and Share Certificates are despatched within stipulated period from the date of
receipt if the documents are correct and valid in all respect.
?"
"
<
_
_
12.11
4
5
6
7
8
&:
NATURE OF CORRESPONDENCE
_?>
"
\
?
_
""
_\
"
"`\_
"
\
\
\
!
"_
"_
"
"
\_`_`_`_\_
162
Nos.
452
98
2
10
67
2023
Corporate Governance
_`_
`
\
dealt with.
12.12
?
"
"
_"
"
}
?`"
\
<!"
"
_ "
Exchange Board of India.
12.13
Outstanding GDRs / ADRs / Warrants or any convertible instruments, conversion date and likely impact on
equity:
?E?A
:
>
12.15
?E?I
7
J?BJEB?A>
No. of Shares
Physical Holding
No. of
Shareholder
1-500
Dematerialised Holding
No. of
Shares
No. of
Shareholder
No. of
Shares
Total Shareholding
No. of
Shareholder
No. of
Shares
Percentage
Shareholders
Holding
8772
81881
8252800
9802105
2.89
501-1000
279825
2754864
4.10
0.90
1001-5000
2076
4120954
2107
4171885
2.16
5001-10000
202
1545408
0.21
0.46
467
467
0.48
94.52
L?HH
1886361
88238
JJI@ABHHL
L@AEI
338627250
100
100
Corporate Governance
12.17
Shareholding Pattern :
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BANKS
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J?BJEB?A
As on 31.03.2013
No. of
Holders
Shares
held
% of total
issued
shares
No. of
Holders
Shares
held
% of total
issued
shares
51.11
51.11
41597801
12.28
12.17
10.65
9.75
19
987126
0.29
20
1054667
117
9.54
126
11.57
2877
952205
0.29
2995
1126106
595
0.07
624
267195
0.08
?`_
15.77
97077
14.67
&:
L@AEI
338627250
100.00
101025
338627250
100.00
NRIs
```_{ |
12.18
Code of Conduct:
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12.20
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Committee.
----------------------xxxx----------------------
164
Corporate Governance
AUDITORS CERTIFICATE ON CORPORATE GOVERNANCE
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to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the
Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the company has
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effectiveness with which the management has conducted the affairs of the Company.
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Chartered Accountants
Chartered Accountants
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A. K. Pradhan
Partner
Partner
Place
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165
Notes
166
Notes
167
Notes
168